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Factors Setting the Tone for Pure Storage's (PSTG) Q2 Earnings
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Pure Storage, Inc. (PSTG - Free Report) is scheduled to report second-quarter fiscal 2021 results on Aug 25.
The company refrained from providing fiscal second-quarter outlook citing uncertainty in demand due to COVID-19-related business impact.
The Zacks Consensus Estimate for fiscal second-quarter revenues stands at $395.2 million, indicating a decline of 0.3% from the prior-year quarter.
Meanwhile, the Zacks Consensus Estimate for the fiscal second-quarter bottom line is unchanged over the past 30 days at break even, compared with earnings of 1 cent in the year-ago reported quarter.
Notably, the company beat estimates in each of the trailing four quarters, the average surprise being 65.37%.
Factors to Note
Pure Storage’s fiscal second-quarter performance is likely to have benefited from solid uptake of cloud storage solutions, including Cloud Block Store, ObjectEngine Cloud, and CloudSnap.
Moreover, adoption of new remote install options for FlashArray and FlashBlade, which enable the installation of systems with limited personnel amid ongoing coronavirus crisis-induced social distancing norms, might have contributed to the to-be-reported quarter’s performance.
Notably, during the fiscal second quarter, in a bid to capitalize on growing clout of flash-based offerings, Pure Storage rolled out the Purity FB 3.0 update for its storage solution software — Flashblade. The update enables real-time performance to speed up modern application workflows.
The company also introduced Purity 6.0 for FlashArray, the latest version of its flagship software suite, which is designed to aid customers store, manage, safeguard, access and mobilize their data efficiently.
Further, Pure Storage is likely to have gained from solid traction of latest subscription-based Evergreen, Modern Data Experience and Pure as-a-Service solutions in the quarter to be reported. The robust adoption of latest subscription services is anticipated to have driven profitability in the fiscal second quarter.
Likewise, strength in its Pure1 META platform — that enables customers to forecast performance requirements to more accurately and timely provision of resources — might get reflected in the fiscal second-quarter results.
Besides, the coronavirus pandemic-induced work-from-home wave that has led to increasing adoption of cloud-based storage might have driven adoption of Pure Storage’s hybrid multi-cloud offerings and cloud data services. It is expected to have positively influenced the fiscal second-quarter performance.
Notably, in first-quarter fiscal 2021, the company added more than 300 customers, bringing the total count to more than 7,800 organizations. The momentum is likely to have continued and contributed to revenues in the fiscal second quarter.
In fact, during the quarter under review, Pure Storage’s flash storage solutions were selected by ServiceNow (NOW - Free Report) to drive performance and data management, and boost business value.
Moreover, the company’s FlashBlade offering was adopted by Crater Labs to power its advance AI and machine learning systems. Also, the company’s offerings have been selected by Children's of Alabama hospital to help reduce log-in times for clinical applications and optimize the time spent taking care of patients.
However, growing expenses on product development amid stiff competition from fellow storage peers including NetApp (NTAP - Free Report) and Dell Technologies (DELL - Free Report) might have limited margin expansion in the fiscal second quarter.
Also, broader weakness in macroeconomic environment triggered by coronavirus crisis has been compelling enterprises to trim capital expenditure, which is anticipated to have affected Pure Storage’s storage business in the to-be-reported quarter.
Pure Storage currently carries a Zacks Rank #4 (Sell).
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Factors Setting the Tone for Pure Storage's (PSTG) Q2 Earnings
Pure Storage, Inc. (PSTG - Free Report) is scheduled to report second-quarter fiscal 2021 results on Aug 25.
The company refrained from providing fiscal second-quarter outlook citing uncertainty in demand due to COVID-19-related business impact.
The Zacks Consensus Estimate for fiscal second-quarter revenues stands at $395.2 million, indicating a decline of 0.3% from the prior-year quarter.
Meanwhile, the Zacks Consensus Estimate for the fiscal second-quarter bottom line is unchanged over the past 30 days at break even, compared with earnings of 1 cent in the year-ago reported quarter.
Notably, the company beat estimates in each of the trailing four quarters, the average surprise being 65.37%.
Factors to Note
Pure Storage’s fiscal second-quarter performance is likely to have benefited from solid uptake of cloud storage solutions, including Cloud Block Store, ObjectEngine Cloud, and CloudSnap.
Pure Storage, Inc. Price and EPS Surprise
Pure Storage, Inc. price-eps-surprise | Pure Storage, Inc. Quote
Moreover, adoption of new remote install options for FlashArray and FlashBlade, which enable the installation of systems with limited personnel amid ongoing coronavirus crisis-induced social distancing norms, might have contributed to the to-be-reported quarter’s performance.
Notably, during the fiscal second quarter, in a bid to capitalize on growing clout of flash-based offerings, Pure Storage rolled out the Purity FB 3.0 update for its storage solution software — Flashblade. The update enables real-time performance to speed up modern application workflows.
The company also introduced Purity 6.0 for FlashArray, the latest version of its flagship software suite, which is designed to aid customers store, manage, safeguard, access and mobilize their data efficiently.
Further, Pure Storage is likely to have gained from solid traction of latest subscription-based Evergreen, Modern Data Experience and Pure as-a-Service solutions in the quarter to be reported. The robust adoption of latest subscription services is anticipated to have driven profitability in the fiscal second quarter.
Likewise, strength in its Pure1 META platform — that enables customers to forecast performance requirements to more accurately and timely provision of resources — might get reflected in the fiscal second-quarter results.
Besides, the coronavirus pandemic-induced work-from-home wave that has led to increasing adoption of cloud-based storage might have driven adoption of Pure Storage’s hybrid multi-cloud offerings and cloud data services. It is expected to have positively influenced the fiscal second-quarter performance.
Notably, in first-quarter fiscal 2021, the company added more than 300 customers, bringing the total count to more than 7,800 organizations. The momentum is likely to have continued and contributed to revenues in the fiscal second quarter.
In fact, during the quarter under review, Pure Storage’s flash storage solutions were selected by ServiceNow (NOW - Free Report) to drive performance and data management, and boost business value.
Moreover, the company’s FlashBlade offering was adopted by Crater Labs to power its advance AI and machine learning systems. Also, the company’s offerings have been selected by Children's of Alabama hospital to help reduce log-in times for clinical applications and optimize the time spent taking care of patients.
However, growing expenses on product development amid stiff competition from fellow storage peers including NetApp (NTAP - Free Report) and Dell Technologies (DELL - Free Report) might have limited margin expansion in the fiscal second quarter.
Also, broader weakness in macroeconomic environment triggered by coronavirus crisis has been compelling enterprises to trim capital expenditure, which is anticipated to have affected Pure Storage’s storage business in the to-be-reported quarter.
Pure Storage currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>