U.S. Markets closed
  • S&P 500

    3,783.28
    -7.65 (-0.20%)
     
  • Dow 30

    30,273.87
    -42.45 (-0.14%)
     
  • Nasdaq

    11,148.64
    -27.77 (-0.25%)
     
  • Russell 2000

    1,763.41
    -12.36 (-0.70%)
     
  • Crude Oil

    87.90
    +1.38 (+1.60%)
     
  • Gold

    1,724.90
    -5.60 (-0.32%)
     
  • Silver

    20.67
    -0.43 (-2.06%)
     
  • EUR/USD

    0.9890
    -0.0096 (-0.9594%)
     
  • 10-Yr Bond

    3.7590
    +0.1420 (+3.93%)
     
  • Vix

    28.98
    -0.09 (-0.31%)
     
  • GBP/USD

    1.1329
    -0.0146 (-1.2700%)
     
  • USD/JPY

    144.5700
    +0.3710 (+0.2573%)
     
  • BTC-USD

    20,153.33
    -37.51 (-0.19%)
     
  • CMC Crypto 200

    457.15
    -1.26 (-0.27%)
     
  • FTSE 100

    7,052.62
    -33.84 (-0.48%)
     
  • Nikkei 225

    27,120.53
    +128.32 (+0.48%)
     

What to Expect Ahead of Pure Storage's (PSTG) Q4 Earnings?

·5 min read

Pure Storage, Inc PSTG is scheduled to report fourth-quarter fiscal 2022 results on Mar 2.

For the fiscal fourth quarter, management anticipates total revenues of $630 million. The Zacks Consensus Estimate for revenues is pegged at $631 million, suggesting an increase of 25.5% on a year-over-year basis.

The Zacks Consensus Estimate for the fiscal fourth-quarter earnings is pegged at 27 cents per share, up 107.7% from the year-ago quarter’s levels.

The company beat estimates in all of the last four quarters. It has a trailing four-quarter earnings surprise of 101.9%, on average.

Shares of Pure Storage have increased 6.5% in the past year compared with the industry's decline of 5%.

Pure Storage, Inc. Price and EPS Surprise

Pure Storage, Inc. Price and EPS Surprise
Pure Storage, Inc. Price and EPS Surprise

Pure Storage, Inc. price-eps-surprise | Pure Storage, Inc. Quote

Factors to Note

Pure Storage’s fiscal fourth-quarter performance is likely to benefit from continued momentum in its subscription services, namely Pure as-a-Service subscription (includes Cloud Block Store), Portworx and Evergreen Storage. Portworx specializes in Kubernetes data services and offers its customers extensive data protection along with cloud mobility for containers running on hybrid clouds. Pure Storage acquired Portworx in 2020 for $370 million.

Increasing customer acquisitions (especially large enterprises clients) along with strength in commercial business bodes well. In the last reported quarter, Pure Storage recorded a 12% increase (or 345 new customers) in new customer acquisitions. The company’s customer count stood at 9,500, including 50% of the Fortune 500 companies at the end of the fiscal third quarter.

Incremental gains from the healthy uptake of FlashArray and FlashBlade — particularly the second-generation FlashArray//C (an all-QLC flash array) solutions — might have acted as a tailwind. FlashArray//C is a cost-effective storage array solution that offers clients enhanced performance capabilities and helps them run complex cloud workloads on a single platform.

The company is likely to benefit from recent product launches. In the last reported quarter, Pure Storage unveiled Portworx Data Services, which is the company’s database-as-a-service (DBaaS) Platform for Kubernetes. The platform is designed to make data service management effortless.

Pure Storage also rolled out the Pure Fusion solution in September 2021. The new offering is a self-service and autonomous storage platform with a strong combination of agile enterprise storage and the cloud’s scalability feature. The company is also likely to benefit from the uptake of its Pure FlashRecover offering, which provides all-flash data backup and recovery in case of a ransomware attack.

In December 2021, Pure Storage unveiled a new FlashArray//XL solution, primarily designed for vital enterprise applications like huge databases, cloud-native and containerized applications. The new FlashArray solution safeguards the stored data and enables easy recovery following any adverse situation. FlashArray//XL solution helps in workload consolidation on lesser arrays and streamlines operations along with lowering rack-space requirements. It also helps to slash power consumption and cooling expenses.

The accelerated migration to private and hybrid cloud infrastructure and increasing usage of flash solutions in data centers are driving demand for Pure Storage’s solutions. The continuation of remote work set up due to the COVID-19 crisis is likely to have driven the adoption of Pure Storage’s hybrid multi-cloud offerings and cloud data services.

Higher expenses on product development amid stiff competition from other storage peers might have limited margin expansion in the to-be-reported quarter.

Pandemic-induced global supply chain disruptions and related higher costs are likely to have exerted pressure on fiscal fourth-quarter margins.

What Our Model Says

Our proven model conclusively predicts an earnings beat for Pure Storage this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Pure Storage has an Earnings ESP of +0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Marvell Technology MRVL has an Earnings ESP of +1.8% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Marvell is set to release fourth-quarter fiscal 2022 results on Mar 3. The Zacks Consensus Estimate for earnings is pegged at 48 cents per share, suggesting an increase of 65.5% from the prior-year quarter’s reported figure. Shares of Marvell have increased 39.4% in the past year.

DICK'S Sporting Goods DKS has an Earnings ESP of +4.9% and a Zacks Rank of 2 at present.

DICK'S Sporting Goods is scheduled to release fourth-quarter fiscal 2021 results on Mar 8. The Zacks Consensus Estimate for earnings is pegged at $3.39 per share, suggesting an increase of 39.5% from the prior-year quarter’s levels. Shares of DKS have increased 47.6% in the past year.

Dollar Tree DLTR has an Earnings ESP of +3.1% and a Zacks Rank of 2.

Dollar Tree is scheduled to release fourth-quarter fiscal 2022 results on Mar 2. The Zacks Consensus Estimate for earnings is pegged at $1.79 per share, declining 16% from the year-ago quarter’s levels. Shares of DLTR returned 41.8% in the past year.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report

DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report

Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report

Pure Storage, Inc. (PSTG) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research