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Why Shares of Pure Storage Jumped Today

Timothy Green, The Motley Fool

What happened

Shares of Pure Storage (NYSE: PSTG) rose on Thursday after the data solutions provider reported its second-quarter results. Pure Storage beat analyst estimates across the board, which was enough good news to overcome weak third-quarter guidance. The stock was up about 14.8% at 1:30 p.m. EST.

So what

Pure Storage reported second-quarter revenue of $396.3 million, up 28% year over year and nearly $4 million above the average analyst estimate. Product revenue grew 24.5% to $300.1 million, while support subscription revenue jumped 42% to $96.2 million. The company added 450 new customers, a record for the second quarter.

A rising stock chart.

Image source: Getty Images.

Non-GAAP (adjusted) earnings per share came in at $0.01, flat from the prior-year period and $0.05 better than analysts were expecting. The company lost $0.26 per share on a GAAP basis, also flat from the second quarter of 2018.

"Our significant growth this quarter and continued market share gains are the result of creating a modern data experience for our customers," said Pure Storage CEO Charles Giancarlo.

Now what

Pure Storage expects to produce revenue between $434 million and $446 million in the third quarter and between $1.645 billion and $1.715 billion for the full year. Analysts were expecting third-quarter revenue guidance of $466.2 million and full-year revenue guidance of $1.72 billion.

While Pure Storage's guidance didn't quite live up to analyst expectations, strong second-quarter results were enough to send the stock higher.

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Timothy Green has no position in any of the stocks mentioned. The Motley Fool recommends Pure Storage. The Motley Fool has a disclosure policy.

This article was originally published on Fool.com