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Friday, November 16, 2012

Earnings Movers: NetApp Inc. (NASDAQ:NTAP), DryShips Inc. (NASDAQ:DRYS)


NetApp posts strong results

Data storage company NetApp Inc.(NASDAQ:NTAP)’s net income for the second quarter has beat Street expectations.  That and the bright outlook presented by the company for the third quarter sent the shares flying in after market trade on Wednesday.

Will NTAP Continue To Move Higher? Find Out Here

For the quarter ended October 26, net income fell drastically to $109.6 million or 30 cents a share from $165.6 million or 64 cents in the prior year period.  If onetime costs such as amortization, interest and stock compensation expenses are excluded, the EPS works out to 51 cents.

Revenue jumped 2 per cent to $1.54 billion.

Analysts had expected an adjusted net income of 48 cents on $1.54 billion revenue.

For the third quarter, the company is looking at earning between 53 cents and 58 cents a share on revenue between $1.58 billion and $1.68 billion.

NetApp has also said that it has agreed to buy storage solutions company CacheIQ.

Shares of the company ended higher by 11% to $30 in Thursday’s trading.

DryShips posts loss, will modify its capex program

On the other hand, drybulk shipper DryShips Inc.(NASDAQ:DRYS)  is going through a difficult time and has said that a funding crunch is forcing it to make changes in its capital expenditure program.  The company has posted a quarterly loss.
"The optimization of our drybulk and tanker newbuilding programs is our top priority right now and we are in discussions with the shipyards in this respect to reduce and prolong our capex program," said CEO George Economou in a statement.
The Greece based company incurred a net loss of $51.3 million on 13 cents a share in the third quarter.  It had earned a net profit of $25 million or 7 cents a share in the same period last year.  Excluding onetime items, the loss in the last quarter works out to 9 cents a share.
Revenue increased 8 percent to $343.6 million.
Analysts had expected a loss of 2 cents on the revenue of $331.52 million.
Shares of DRYS had a poor session as it slumped about 20%.

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