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What's in the Offing for Pure Storage (PSTG) in Q2 Earnings?
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Pure Storage Inc. (PSTG - Free Report) is scheduled to report second-quarter fiscal 2019 earnings on Aug 21. Notably, the company beat the Zacks Consensus Estimate for earnings in the trailing four quarters, recording an average positive surprise of 53.9%. In the last reported quarter, the company delivered a positive earnings surprise of 41.7%.
In the last reported quarter, the company posted non-GAAP loss of 7 cents per share, narrower than the Zacks Consensus Estimate by 5 cents. The figure was also below the year-ago loss of 12 cents per share.
Total revenues surged 40.1% from the year-ago quarter to $255.9 million, marginally ahead of the Zacks Consensus Estimate of $253 million. Revenues outpaced the mid-point of the guided range by 2.4%.
The narrower loss and revenues beat are positives for Pure Storage. Moreover, per IDC MarketScape: Worldwide All-Flash Array 2017 Vendor Assessment report, the company leads in the space, leaving NetApp (NTAP - Free Report) , Dell EMC and Hewlett Packard Enterprise trailing. This dominance of Pure Storage can be attributed to robust all-flash and NVMe portfolio.
Guidance & Estimates
Pure Storage expects second-quarter fiscal 2019 revenues in the range of $296-$304 million. The Zacks Consensus Estimate for revenues is pegged at $301.6 million.
For fiscal 2019, management revised anticipated revenue range marginally from the initial range of $1.31-$1.36 billion to $1.32-$1.36 billion. The Zacks Consensus Estimate for revenues is pegged at $1.35 billion.
Pure Storage stock has gained 78.2% year over year, outperforming the 24.4% rally of the industry it belongs to.
Factor Likely to Impact Q1 results
Pure Storage is rapidly gaining traction in the flash storage market, which is evident from its expanding customer base. During the quarter under review, it added more than 300 new customers, bringing the total base to 4800 organizations and reflecting a year-over-year increase of 45%.
The company’s strong product portfolio including the likes of FlashArray and FlashBlade business segments was the key catalyst. Additionally, its data platform for cloud is gaining traction.
Cisco’s tie-up with the company’s FlashStack continues to significantly accelerate overall converged infrastructure and integrated systems markets. FlashStack is well poised for the future as the company continues to invest with its partners in full stack automation and simplicity.
The company’s data platform for cloud is gaining traction. However, intensifying competition owing to the presence of major players such as Amazon’s Amazon Web Services (“AWS”) and Microsoft’s Azure in cloud storage remains a concern.
Management is optimistic about its scalable storage solutions in an era when the world is being driven by big-data, artificial intelligence (AI) and data analytics based information. The company is currently focusing on three major aspects, namely increasing cloud customer base, solidifying the position of its next generation workload related core data infrastructure and tapping large enterprises as they “cloudify” their on-premise IT infrastructure.
Management is also positive about the company’s partner ecosystem, which assisted it in winning a multimillion dollar deal with a prominent financial services institution. Pure Storage’s extended partnership with NVIDIA, a dominant player in AI related computation, is anticipated to be a further positive.
Pure Storage recently introduced FlashStack with FlashBlade to speed up the analytics processes for the data warehouses. Further, the company announced the availability of both AIRI and AIRI Mini, with select reseller partners.
Markedly, AIRI and AIRI Mini which provide users with comprehensive AI ready infrastructure, leverages NVIDIA’s DGX-1 servers.
The new FlashStack solution, developed on its FlashBlade solution is customized to accelerate the performance of Oracle’s Data Warehouse.
We believe that being a pure-play flash storage provider Pure Storage is well-positioned to benefit from this move.
Moreover, the storage initiatives to accelerate AI related processes for the clientele will aid the company’s growth going ahead.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Pure Storage has a Zacks Rank #2 and an Earnings ESP is -18.54%.
Stocks With Favorable Combination
Here are a couple of companies which, as per our model, have the right combination of elements to post an earnings beat this quarter:
Splunk Inc. has an Earnings ESP of +6.25% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
What's in the Offing for Pure Storage (PSTG) in Q2 Earnings?
Pure Storage Inc. (PSTG - Free Report) is scheduled to report second-quarter fiscal 2019 earnings on Aug 21. Notably, the company beat the Zacks Consensus Estimate for earnings in the trailing four quarters, recording an average positive surprise of 53.9%. In the last reported quarter, the company delivered a positive earnings surprise of 41.7%.
In the last reported quarter, the company posted non-GAAP loss of 7 cents per share, narrower than the Zacks Consensus Estimate by 5 cents. The figure was also below the year-ago loss of 12 cents per share.
Total revenues surged 40.1% from the year-ago quarter to $255.9 million, marginally ahead of the Zacks Consensus Estimate of $253 million. Revenues outpaced the mid-point of the guided range by 2.4%.
The narrower loss and revenues beat are positives for Pure Storage. Moreover, per IDC MarketScape: Worldwide All-Flash Array 2017 Vendor Assessment report, the company leads in the space, leaving NetApp (NTAP - Free Report) , Dell EMC and Hewlett Packard Enterprise trailing. This dominance of Pure Storage can be attributed to robust all-flash and NVMe portfolio.
Guidance & Estimates
Pure Storage expects second-quarter fiscal 2019 revenues in the range of $296-$304 million. The Zacks Consensus Estimate for revenues is pegged at $301.6 million.
For fiscal 2019, management revised anticipated revenue range marginally from the initial range of $1.31-$1.36 billion to $1.32-$1.36 billion. The Zacks Consensus Estimate for revenues is pegged at $1.35 billion.
Pure Storage stock has gained 78.2% year over year, outperforming the 24.4% rally of the industry it belongs to.
Factor Likely to Impact Q1 results
Pure Storage is rapidly gaining traction in the flash storage market, which is evident from its expanding customer base. During the quarter under review, it added more than 300 new customers, bringing the total base to 4800 organizations and reflecting a year-over-year increase of 45%.
The company’s strong product portfolio including the likes of FlashArray and FlashBlade business segments was the key catalyst. Additionally, its data platform for cloud is gaining traction.
Cisco’s tie-up with the company’s FlashStack continues to significantly accelerate overall converged infrastructure and integrated systems markets. FlashStack is well poised for the future as the company continues to invest with its partners in full stack automation and simplicity.
The company’s data platform for cloud is gaining traction. However, intensifying competition owing to the presence of major players such as Amazon’s Amazon Web Services (“AWS”) and Microsoft’s Azure in cloud storage remains a concern.
Management is optimistic about its scalable storage solutions in an era when the world is being driven by big-data, artificial intelligence (AI) and data analytics based information. The company is currently focusing on three major aspects, namely increasing cloud customer base, solidifying the position of its next generation workload related core data infrastructure and tapping large enterprises as they “cloudify” their on-premise IT infrastructure.
Management is also positive about the company’s partner ecosystem, which assisted it in winning a multimillion dollar deal with a prominent financial services institution. Pure Storage’s extended partnership with NVIDIA, a dominant player in AI related computation, is anticipated to be a further positive.
Pure Storage recently introduced FlashStack with FlashBlade to speed up the analytics processes for the data warehouses. Further, the company announced the availability of both AIRI and AIRI Mini, with select reseller partners.
Markedly, AIRI and AIRI Mini which provide users with comprehensive AI ready infrastructure, leverages NVIDIA’s DGX-1 servers.
The new FlashStack solution, developed on its FlashBlade solution is customized to accelerate the performance of Oracle’s Data Warehouse.
We believe that being a pure-play flash storage provider Pure Storage is well-positioned to benefit from this move.
Moreover, the storage initiatives to accelerate AI related processes for the clientele will aid the company’s growth going ahead.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Pure Storage has a Zacks Rank #2 and an Earnings ESP is -18.54%.
Stocks With Favorable Combination
Here are a couple of companies which, as per our model, have the right combination of elements to post an earnings beat this quarter:
Redhill Biopharma Ltd. (RDHL - Free Report) , with an Earnings ESP of +3.19% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Splunk Inc. has an Earnings ESP of +6.25% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>