Here's What Key Metrics Tell Us About Pure Storage (PSTG) Q3 Earnings
Pure Storage (PSTG) reported $762.84 million in revenue for the quarter ended October 2023, representing a year-over-year increase of 12.8%. EPS of $0.50 for the same period compares to $0.31 a year ago.
The reported revenue represents a surprise of +0.22% over the Zacks Consensus Estimate of $761.2 million. With the consensus EPS estimate being $0.41, the EPS surprise was +21.95%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Pure Storage performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Product: $453.28 million versus $454.56 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +5.1% change.
Revenue- Subscription services: $309.56 million versus $306.91 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +26.5% change.
Non-GAAP Gross profit- Product: $331.33 million versus the eight-analyst average estimate of $320.70 million.
Non-GAAP Gross profit- Subscription services: $233.42 million compared to the $224.30 million average estimate based on eight analysts.
Gross profit- Product: $326.51 million versus the two-analyst average estimate of $321.46 million.
Gross profit- Subscription services: $226.24 million versus $213 million estimated by two analysts on average.
View all Key Company Metrics for Pure Storage here>>>
Shares of Pure Storage have returned +6.1% over the past month versus the Zacks S&P 500 composite's +10.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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