Why PureStorage Is Wednesday’s Big Earnings Winner

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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.

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.