NetApp Inc. (NASDAQ: NTAP) reported fourth quarter and full 2015 fiscal year results after markets closed on Wednesday afternoon. The data storage provider posted adjusted earnings of $0.65 and $1.54 billion in revenues. In the quarter a year ago, NetApp reported EPS of $0.84 on revenue of $1.65 billion. Fourth-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.72 and $1.59 billion in revenue.

For the 2015 fiscal year NetApp posted adjusted EPS of $2.70 on revenues of $6.12 billion compared with EPS for the prior year of $2.78 and revenues of $6.33 billion. Consensus estimates called for EPS of $2.77 on revenues of $6.17 billion.

During fiscal year 2015, NetApp returned $1.37 billion to shareholders through share repurchases and a $0.66 annualized cash dividend.

NetApp increased its dividend for the first quarter of the 2016 fiscal year to $0.18 per share.

The company’s outlook for the first quarter includes net revenues in a range of $1.275 to $1.375 billion and non-GAAP EPS of $0.20 to $0.25. Analysts are looking for EPS of $0.60 on revenues of $1.46 billion. On a GAAP basis NetApp expects a net loss of $0.06 to $0.11 per share.

The rise in dividend payments won’t make up for the weak outlook.

The company’s CEO said, “We are not satisfied with our fourth quarter results and are taking concrete action to transition NetApp for the next phase of growth.”

The company’s forecast for the current quarter leads one to ask the question, “When does that next growth phase start?” As analysts begin adjusting their view on NetApp the company could be in for some tough going.

Investors are voting with the feet in the after-hours session, taking the stock down about 8% to $32.51 in a 52-week range of $34.02 to $43.75. The consensus price target on the stock is $39.83 a share and the high price target is $48.00.

ALSO READ: The 9 Most Misleading Product Claims

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.