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Pure Storage (PSTG) to Report Q4 Earnings: What's in Store?
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Pure Storage, Inc (PSTG - Free Report) is scheduled to report fourth-quarter fiscal 2024 results on Feb 28.
PSTG expects revenues to be $782 million for fourth-quarter fiscal 2024, representing a decline of 3.5% from the year-ago reported figure. The Zacks Consensus Estimate is pegged at $782.2 million, suggesting a decline of 3.5% from the prior-year levels.
The Zacks Consensus Estimate for earnings is pegged at 45 cents per share. The company reported earnings of 53 cents in the prior-year quarter.
PSTG beat estimates in each of the last four quarters, the average surprise being 44.8%.
The company’s performance in the fourth quarter is likely to have benefited from strong uptake of the FlashBlade portfolio, including FlashBlade//E coupled with robust demand for its Evergreen//One storage-as-a-service offering. It expects more than doubling of sales for combined Evergreen//One storage-as–a-service and Evergreen//Flex offerings for fiscal 2024. PSTG projects Evergreen//One and Evergreen//Flex solutions to generate revenues of $400 million in fiscal 2024.
The rapid proliferation of generative AI is expected to have boosted demand for FlashBlade and Portworx products. Increased customer adoption of Portworx storage software for databases, messaging and logging systems is a tailwind.
Apart from this, continued momentum in its subscription services is likely to have boosted Pure Storage’s fiscal fourth-quarter performance. We expect revenues from subscription services to be $279.2 million, up 5.3% year over year for the fiscal fourth quarter.
An expanded customer base (especially large enterprise clients) along with strength in commercial business bode well.
However, the company expects fiscal 2024 revenues to be affected by increased shift to Evergreen//One solution and a delay in fulfillment of a $41 million non-cancelable product order until next year with a Telco customer. On a combined basis, these two factors represent 4.5 basis points of incremental headwind to revenues compared with the annual revenue guidance of growth in mid-to-high single digits provided by PSTG at the beginning of the year, added management.
The company now expects fiscal 2024 revenues to be $2.82 billion, representing a rise of 2.5% from the year-ago levels. The non-GAAP operating margin is expected to be 16%, up from 15.5% projected earlier.
Weakness in global macroeconomic conditions and stiff competition in the flash-based storage market remain concerning. Also, unfavorable forex movements, volatile supply-chain dynamics and cautious IT spending are headwinds.
What Our Model Says
Our proven model predicts an earnings beat for PSTG 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.
PSTG has an Earnings ESP of +2.68% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this time around.
The Zacks Consensus Estimate for IPAR’s to-be-reported quarter’s revenues is pegged at $329 million. The consensus estimate for earnings is pegged at 35 cents per share.
The TJX Companies, Inc (TJX - Free Report) has an Earnings ESP of +1.52% and a Zacks Rank #3. TJX is set to post fourth-quarter fiscal 2024 results on Feb 28.
The Zacks Consensus Estimate for TJX’s to-be-reported quarter’s revenues is pegged at $16.2 billion. The consensus estimate for earnings is pegged at $1.12 per share.
Six Flags Entertainment Corporation (SIX - Free Report) has an Earnings ESP of +21.85% and carries a Zacks Rank #2. SIX is slated to release fourth-quarter 2023 numbers on Feb 29.
The Zacks Consensus Estimate for SIX’s to-be-reported quarter’s earnings and revenues is pegged at 27 cents per share and $298.4 million, respectively.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Pure Storage (PSTG) to Report Q4 Earnings: What's in Store?
Pure Storage, Inc (PSTG - Free Report) is scheduled to report fourth-quarter fiscal 2024 results on Feb 28.
PSTG expects revenues to be $782 million for fourth-quarter fiscal 2024, representing a decline of 3.5% from the year-ago reported figure. The Zacks Consensus Estimate is pegged at $782.2 million, suggesting a decline of 3.5% from the prior-year levels.
The Zacks Consensus Estimate for earnings is pegged at 45 cents per share. The company reported earnings of 53 cents in the prior-year quarter.
PSTG beat estimates in each of the last four quarters, the average surprise being 44.8%.
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 fourth quarter is likely to have benefited from strong uptake of the FlashBlade portfolio, including FlashBlade//E coupled with robust demand for its Evergreen//One storage-as-a-service offering. It expects more than doubling of sales for combined Evergreen//One storage-as–a-service and Evergreen//Flex offerings for fiscal 2024. PSTG projects Evergreen//One and Evergreen//Flex solutions to generate revenues of $400 million in fiscal 2024.
The rapid proliferation of generative AI is expected to have boosted demand for FlashBlade and Portworx products. Increased customer adoption of Portworx storage software for databases, messaging and logging systems is a tailwind.
Apart from this, continued momentum in its subscription services is likely to have boosted Pure Storage’s fiscal fourth-quarter performance. We expect revenues from subscription services to be $279.2 million, up 5.3% year over year for the fiscal fourth quarter.
An expanded customer base (especially large enterprise clients) along with strength in commercial business bode well.
However, the company expects fiscal 2024 revenues to be affected by increased shift to Evergreen//One solution and a delay in fulfillment of a $41 million non-cancelable product order until next year with a Telco customer. On a combined basis, these two factors represent 4.5 basis points of incremental headwind to revenues compared with the annual revenue guidance of growth in mid-to-high single digits provided by PSTG at the beginning of the year, added management.
The company now expects fiscal 2024 revenues to be $2.82 billion, representing a rise of 2.5% from the year-ago levels. The non-GAAP operating margin is expected to be 16%, up from 15.5% projected earlier.
Weakness in global macroeconomic conditions and stiff competition in the flash-based storage market remain concerning. Also, unfavorable forex movements, volatile supply-chain dynamics and cautious IT spending are headwinds.
What Our Model Says
Our proven model predicts an earnings beat for PSTG 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.
PSTG has an Earnings ESP of +2.68% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this time around.
Inter Parfums, Inc (IPAR - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #2. IPAR is scheduled to report fourth-quarter fiscal 2023 earnings on Feb 27. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for IPAR’s to-be-reported quarter’s revenues is pegged at $329 million. The consensus estimate for earnings is pegged at 35 cents per share.
The TJX Companies, Inc (TJX - Free Report) has an Earnings ESP of +1.52% and a Zacks Rank #3. TJX is set to post fourth-quarter fiscal 2024 results on Feb 28.
The Zacks Consensus Estimate for TJX’s to-be-reported quarter’s revenues is pegged at $16.2 billion. The consensus estimate for earnings is pegged at $1.12 per share.
Six Flags Entertainment Corporation (SIX - Free Report) has an Earnings ESP of +21.85% and carries a Zacks Rank #2. SIX is slated to release fourth-quarter 2023 numbers on Feb 29.
The Zacks Consensus Estimate for SIX’s to-be-reported quarter’s earnings and revenues is pegged at 27 cents per share and $298.4 million, respectively.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.