Why PureStorage Is Wednesday’s Big Earnings Winner
Pure Storage shares surged after it released its fiscal second-quarter financial results late on Tuesday.
When Pure Storage Inc. (NYSE: PSTG) released its fiscal second-quarter financial results after the markets closed on Tuesday, the company said that it had $0.01 in earnings per share (EPS) and $308.9 million in revenue. The consensus estimates had called for a net loss of $0.05 per share and $301.6 million in revenue, and the same period of last year reportedly had a per-share net loss of $0.10 and revenue of $224.7 million.
During the latest quarter, nearly 400 new customers joined Pure Storage, increasing the total to more than 5,150 organizations. New customer wins in the quarter include: Honda Federal Credit Union, Fresenius Medical Care, New York Genome Center and the University of Texas MD Anderson Cancer Center, to name a few.
The company recorded an all-time high adjusted gross margin of 68.0%, compared to 67.2% in the same period from last year.
Looking ahead to the third quarter, the company expects to see revenues in the range of $361 million to $369 million, with a gross margin of 64.5% to $67.5%. Consensus estimates call for $0.07 in EPS and $362.88 million in revenue for the quarter.
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Pure Storage CEO Charles Giancarlo said:
Pure has delivered another exceptional quarter, with all measures exceeding our Q2 guidance ranges. Our continued focus on enabling customers to succeed in a data-centric world is working and validated, maintaining Pure’s lead in the data storage market.
Shares of Pure Storage were last seen up about 17% at $25.80, with a consensus analyst price target of $25.00 and a 52-week trading range of $12.47 to $26.30.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
