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Omar Venerio
Omar Venerio
Articles (1681) 

Thursday Morning Market Highlights

Wall Street in the green, NetApp drops on negative earnings report

US markets

U.S. stocks were in the green on Thursday ahead of a correction in the first-quarter gross domestic product (GDP), which was revised to a 5.0% annualized decline from previous 4.8% estimations.The Dow Jones Industrial Average gained 0.36% to 25,641, the S&P 500 index rose 0.43% to 3,049and the Nasdaq Composite Index was up 0.39% to 9,449.

Gainers

• Eli Lilly and Co (NYSE:LLY) +3.8%

• Ameren Corp (NYSE:AEE) +3.7%

• Resmed Inc (NYSE:RMD) +3.3%

• Cooper Companies Inc (NYSE:COO) +3.1%

• Boeing Co (NYSE:BA) +2.8%

Losers

• HP Inc (NYSE:HPQ) -12.3%

• DXC Technology Co (NYSE:DXC) -5.7%

• Nordstrom Inc (NYSE:JWN) -5.7%

Xerox Holdings Corp(NYSE:XRX) -5.2%

• Harley-Davidson Inc (NYSE:HOG) -5%

• Kohls Corp (NYSE:KSS) -5%

Global markets

The main European stock markets traded in the green.The UK's FTSE 100 gained 1.19%, France's CAC 40 jumped 1.85%, Germany's Dax advanced 1.22% and Spain's Ibex 35 was up 0.78%.

In Asia, Japan's Nikkei 225 gained 2.32%, India’s BSE Sensex jumped 1.88%, Hong Kong's Hang Seng declined 0.72% and China's Shanghai Composite rose 0.33%.

NetApp releases earnings report

Shares of NetApp, Inc. (NASDAQ:NTAP) fell almost 3% on Thursday after the company announced its fiscal fourth-quarter 2020 results. The company posted earnings per share of$1.19, beating analysts’ estimates by 15 cents, but revenue of $1.4 billion declined 11.9% year-over-year, even though it beat predictions by $30 million.

CEO George Kurian said the following on the earnigns report:

“During this unprecedented situation, our priority has been supporting our employees, customers, partners, and communities. Despite the challenging environment, we delivered solid gross margin, cash flow and operating leverage in the fourth quarter. Our cloud business grew substantially and our new customer acquisition districts again performed well."

GAAP net income was $196 million compared to GAAP net income of $396 million in the same quarter of fiscal 2019. Non-GAAP net income was $265 million compared to non-GAAP net income of $305 million in the comparable period of fiscal 2019.

Looking the financial position, the company had Cash, Cash Equivalents and Investments worth $2.88 billion at the end of the fourth quarter, while the cash generated by operations reached $383 million compared to $399 million in the same quarter of fiscal 2019.

Looking ahead to the first quarter of fiscal 2021, the company expects GAAP earnings per share between 18 and 26 cents and Non-GAAP earnings per share in the range of 36 to 44 cents.

Steven Cohen (Trades, Portfolioinitiated a new position in the stock with 61,726 shares during the first quarter of calendar 2020. Richard Snow (Trades, Portfolio) reduced his holding 11% to 184,699 shares, Simon´s firm cut his holding 40% to 3,284,840 shares and Ray Dalio sold out the stock.

Disclosure:The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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