(RTTNews) - Shares of NetApp Inc. (NTAP) were down 14 percent on Thursday's extended-hours after the company guided its fourth quarter and fiscal 2025 outlook below the Street expectations. The company also posted lower profit in its latest quarter, impacted by higher total cost of revenues.
The company also revealed the appointment of Wissam Jabre as executive vice president and chief financial officer, from March 10. He has more than 20 years of experience leading finance organizations.
In the fourth quarter, the company expects earnings per share between $1.45 and $1.55. Adjusted earnings per share are expected between $1.84 and $1.94 on revenues in the $1.65 - $1.80 billion range. On average, analysts are looking for earnings per share of $1.99 on revenues of $1.77 billion for the quarter. Analysts' estimates typically exclude special items.
For fiscal 2025, the intelligent data infrastructure company projects earnings per share between $5.49 and $5.59. On an adjusted basis, earnings per share are expected in the $7.17 - $7.27 range on revenues between $6.49 billion and $6.64 billion. On average, analysts are projecting earnings of $7.33 per share on revenues of $6.67 billion.
For the third quarter, the company posted net income of $299 million or $1.44 per share, down from $313 million or $1.48 per share in the same period last year. On an adjusted basis, income came in at $397 million or $1.91 per share, compared to $410 million or $1.94 per share in the prior-year period.
Analysts on average had expected the company to earn $1.91 per share. Analysts' estimates typically exclude special items.
Third-quarter revenues rose 2 percent to $1.64 billion from $1.61 billion in the same quarter of fiscal year 2024. NetApp announced that the next cash dividend of $0.52 per share will be paid on April 23, to stockholders of record as of the close of business on April 4.
On the Nasdaq, the stock was down 14 percent on Thursday's after-trade at $102.14. NTAP closed Thursday's trade at $118.22, down 5 percent.
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