NetApp Shares Plunge After Data-Management Firm Cuts Earnings Outlook

NetApp’s shares fell about 12% in postmarket trading after the data-management company cut its guidance for full-year adjusted earnings per share and revenue growth, despite an improving supply environment and a record financial performance in the second quarter.

Although some analysts expected the company to reaffirm or even raise its view, NetApp cut its earnings per share range to $5.30-$5.50 from $5.40-$5.60 and revenue growth to 2%-4% from 6%-8%. Third-quarter forecasts also missed estimates. However, second-quarter adjusted EPS beat analysts’ expectations, and revenue was almost in line with consensus.