Pure Storage (PSTG) to Report Q3 Earnings: What's in Store?
Pure Storage, Inc PSTG is scheduled to report third-quarter fiscal 2024 results on Nov 29.
For the fiscal third quarter, management anticipates total revenues to be $760 million, indicating year-over-year growth of 12%. The Zacks Consensus Estimate is pegged at $761.2 million, suggesting an increase of 12.6% on a year-over-year basis.
The Zacks Consensus Estimate for earnings is pegged at 41 cents per share. The company reported earnings of 31 cents in the prior-year quarter.
PSTG beat estimates in each of the last four quarters, the average surprise being 44.1%.
Pure Storage, Inc. Price and EPS Surprise
Pure Storage, Inc. price-eps-surprise | Pure Storage, Inc. Quote
Factors to Note
The company’s performance in the third quarter is likely to have benefited from the strong uptake of the FlashBlade//E coupled with robust demand for its Evergreen//One subscription sales. The company is well-positioned to gain from the ongoing data explosion.
The rapid proliferation of generative AI is expected to have boosted demand for FlashBlade and Portworx products. Apart from this, the continued momentum in its subscription services, namely Pure as-a-Service subscription (including Cloud Block Store), Portworx and Evergreen Storage, is likely to have boosted Pure Storage’s fiscal third-quarter performance. We expect revenues from subscription services to be $301.1 million for the fiscal third quarter.
Pure Storage continues to invest heavily in research and development to launch new products as well as enhance existing product lines. In October, the company announced that it had taken a significant step forward in its Evergreen portfolio by offering to cover customers' power and rack space costs for its Evergreen//One Storage-as-a-Service (STaaS) and Evergreen//Flex subscriptions.
Also, the company has announced the launch of its Pure Protect//DRaaS, which is a Disaster Recovery as a Service solution. The solution will help organizations improve data security amid rising ransomware attacks and natural disasters.
An expanded customer base (especially large enterprise clients) along with strength in commercial business bode well. In the last reported quarter, Pure Storage added 276 new customers. The company’s customer base includes 58% of the Fortune 500 companies.
However, weakness in global macroeconomic conditions and stiff competition in the flash-based storage market remain concerning. Unfavorable forex movements, volatile supply-chain dynamics and inflation are likely to have been added headwinds.
What Our Model Says
According to the Zacks model, 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. This is not the case here.
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.
Snowflake SNOW has an Earnings ESP of +67.33% and a Zacks Rank #2. SNOW is set to report third-quarter fiscal 2024 results on Nov 29. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SNOW’s to-be-reported quarter’s EPS and revenues is pegged at 16 cents and $710.5 million, respectively. Shares of SNOW have soared 19.3% in the past year.
Genasys GNSS has an Earnings ESP of +21.74% and a Zacks Rank #2. GNSS is scheduled to release fourth-quarter fiscal 2023 numbers on Dec 7.
The Zacks Consensus Estimate is pegged at a loss of 8 cents per share. The consensus estimate for revenues is pegged at $10.14 million. The stock has lost 41% of its value in the past year.
Academy Sports and Outdoors ASO has an Earnings ESP of +1.75% and a Zacks Rank #2. ASO is slated to post third-quarter fiscal 2023 results on Nov 30.
The Zacks Consensus Estimate for ASO to-be-reported quarter’s EPS and revenues is pegged at $1.65 and $1.46 billion, respectively. Shares of ASO have declined 5.1% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Snowflake Inc. (SNOW) : Free Stock Analysis Report
Pure Storage, Inc. (PSTG) : Free Stock Analysis Report
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Academy Sports and Outdoors, Inc. (ASO) : Free Stock Analysis Report
