NetApp's (NTAP) Tops Q2 Views, But Q3 Gudiance Doesn't Live Up to Lofty Views


With earnings due after the close, investors in NetApp (Nasdaq: NTAP) were shocked when the saw shares plunge mid-day after a earnings and guidance leak.

At around 2:42PM Bloomberg ran headlines that EPS for the second quarter was $0.52 on sales of $1.21 billion, which was slightly better than the consensus of $0.49 and $1.19 billion. However, third quarter EPS guidance was being reported at $0.48-$0.50, versus the consensus of $0.51, and Q3 sales of $1.240 billion to $1.290 billion, versus the consensus of $1.26 billion.

After selling off 6.6 percent on the headlines, shares were halted for trading at 3:11:27 PM ET.

At 3:31PM ET, NetApp confirmed the earlier report by release the official press release. The company didn't explain how the report leaked.

The leak of NetApp's numbers comes just a week after the same thing happened to Disney ( DIS ), with earnings leaking just before the close.

Share are now set to re-open for trading at 4:15PM ET.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: DIS , NTAP

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