NetApp rallies after guiding to above 15% annual earnings growth

Shares of NetApp moved higher after the company released its presentation slides for today’s analyst day. In the slides, NetApp guided fiscal 2019 earnings growth to above 15% and revenue growth to mid-single digit. The company sees “sustained mid-single digit topline growth, driven by strong strategic product performance.” It expects fiscal 2019 to be its second consecutive year of over $1B in free cash flow. NetApp also sees the change to revenue recognition accounting standard 606 being immaterial to its guidance. Looking forward to fiscal 2019 through fiscal 2021, the company guided earnings growth to above 15% each year and revenue growth to mid-single digit. NetApp expects free cash flow growing from 19% to 24% of revenue. It expects to double its dividend between now and fiscal 2021, and committed to a new $4B share repurchase program. “Leverage in the business model yields considerable free cash flow and earnings growth,” while the “cloud is additive and accretive to our business,” NetApp said. It expects total addressable market expansion and share gains to support “sustained growth.” In midday trading, shares of NetApp are up 2%, or $1.34, to $63.25.

Related posts

Carl Icahn Increases His Stake In Take-Two Interactive To 10.68%

ValueWalk

iPad Mini Display Outperformed By Kindle Fire HD & Nexus 7

ValueWalk

Foxconn Might Open Manufacturing Plants In The U.S. [REPORT]

ValueWalk

Peter Cundill Protégé Tim McElvaine on Investing in Japan [VIDEO]

ValueWalk

Set Bing Home Page Image As Lock Screen In Windows 8

ValueWalk

Morning Market News: JCP, APO, MCHP, ZIP, ENR, LGF, EA, ATVI, COV, LNT

ValueWalk