RTTNews | Aug 26, 2020 04:24PM EDT

16:24 Wednesday, August 26, 2020 (RTTNews.com) - Shares of NetApp Inc. (NTAP) jumped over 10% on extended trading Wednesday after the company's first-quarter profit and revenues trumped Wall Street estimates.

Sunnyvale, California-based NetApp reported first-quarter net income of $77 million or $0.35 per share, down from $103 million or $0.42 per share last year.

On an adjusted basis, NetApp's earnings were $0.73 per share for the three-month period, up from $0.65 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.41 per share. Analysts' estimates typically exclude special items.

NetApp's revenues for the quarter to $1.30 billion from $1.24 billion last year. Analysts had a consensus revenue estimate of $1.15 billion.

"We executed well in the first quarter. Revenue, operating margin and EPS all exceeded our guidance, despite a challenging environment. Enterprises are increasingly prioritizing transformational and hybrid cloud projects, which drove our momentum as customers turn to NetApp to help them achieve these goals," said George Kurian, chief executive officer.

Looking forward to the second quarter, NetApp expects adjusted earnings of $0.66 to $0.74 per share and revenues of $1.225 billion to $1.375 billion. Analysts currently estimate earnings of $0.77 per share and revenues of $1.24 billion.

NTAP closed Wednesday's trading at $42.21, up $0.44 or 1.05%, on the Nasdaq.The stock further gained $4.50 or 10.66%, in the after-hours trading.

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