NTAP beat expectations and raised guidance, yet shares fell ~10% due to relative market preference for HPE.

news about NetApp. So, let's look at these numbers. First- quarter EPS came in at $2.58, much better than the market's expected $2.12. Consolidated gross margin for the quarter was 70.6 percent, one percentage point higher than market expectations.

And net income is $2.03 billion. The market was expecting $1.83 billion. So, there are clear gaps in important metrics here.

When we look at their forecast for the current quarter, they are projecting revenue of $2.03 to $2.18 billion. The market estimate was $1.85 billion. That is, it will at least be on par with the current quarter , perhaps much better than that and much higher than the market forecast.

EPS for the current quarter is $ 2.54 to $2.64. The market estimate was $2.16. This is fairly consistent with our current quarterly data.

Revenue for the fiscal year is forecast to be between $7.98 and $8.23 billion. This is higher than the previous forecast of $7.33 to $7.58 billion. They are projecting fiscal year EPS of $9.73 to $10.03, higher than the previous range of $8.70 to $9.

Additionally, their gross margin is estimated to be 68.1 to 69.1 percent. This is slightly lower than the 69.3 percent expected for the fiscal year. NetApp still maintains a 3.5 percent gain.

Yes, what is different about the actual numbers they give is not their predictions. I mean , the whole thing is quite positive. EPS also increased due to better-than-expected margins, a major boost in net income, and gross margins.

You can understand it just by looking at these numbers. It is also a stock.

Their full- year EPS forecast has increased despite a slight lag in gross margin. So, I think analysts will see this as a conservative guide and a strong guide at the same time.

Since they gave us a margin of 70.6% and a midpoint guide of 68%, there is room for improvement here. You know, if they continue what they did in the first quarter, the EPS rate will be pretty good throughout the year.

Yes, of course. I mean, besides maintaining these gains , you know, we're only up about one percent now. Before moving on to the Five Below, let's take a look at another important metric from NetApp.

Their all- flash array net income. This is an important metric for this company. Reached a record of $1.3 billion. This is up 47% from the previous year and their public cloud revenue also reached record levels.

I think it's important to compare side by side again. NetApp has now dropped quite significantly since these numbers came in. Therefore, the market is preferring the HP report over the NetApp report.

, and NetApp has taken a complete turn in the opposite direction, down nearly 10%.