(Reuters) -NetApp raised its annual profit forecast on resilient demand for its cloud-based data solutions as companies push on digital transformation projects, sending its shares up 10% after the bell on Thursday.
Rise of artificial intelligence applications has also boosted spending on cloud computing, including storage solutions like the ones provided by NetApp.
The company expects full-year adjusted profit per share between $6.05 and $6.25 compared with $5.65 to $5.85 it had previously projected.
“We are at the forefront of the evolution of the storage industry, helping our customers turn disruption into opportunity,” CEO George Kurian said.
The company, whose clients include Amazon.com’s Amazon Web Services, Google Cloud and Microsoft’s Azure, helps businesses improve efficiency of their data storage infrastructure.
Its second-quarter revenue of $1.56 billion beat analysts’ average estimate of $1.53 billion, according to LSEG data.
On an adjusted basis, it earned $1.58 per share compared with $1.48 a year earlier.
NetApp forecast net revenue for the third quarter to be between $1.51 billion and $1.67 billion, the mid-point of which was above analysts’ estimate of $1.56 billion.
It expects adjusted profit between $1.64 and $1.74 per share, above market expectation of $1.53.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Arun Koyyur)
