NetApp guides for return to growth from next quarter
Data storage provider NetApp reported its fiscal Q2 yesterday after market close (~calendar Q3), with sales +2% vs cons and EPS +14%. It also narrowed the FY sales guidance to -2% growth vs cons -3.5% and also said that it expects sequential growth in product revenues in H2'24 (next two quarters). This means that NetApp guides total revenue growth to be +4% in Q3-Q4 vs -6-10% in Q1-Q2, a clear improvement. Share was up 12% in after-market. Normal lead times for portfolio have been reached and it is seeing early signs of generative AI becoming a demand driver. There is no perfect correlatin between NetApp growth figures and Proact system sales organic growth, but we see a somewhat leading indicator from NetApp, which could be seen as positive for Proact in the coming quarters. As Proact is also re-selling hardware from Dell for example, there is not only a pure NetaApp read-through. However, we find the NetApp comments on return to growth already next quarter and the beat vs consensus expectations as positive for Proact as a partner to NetApp and re-seller of their products in Europe (link).
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