Pure Storage, Inc ( PSTG Quick Quote PSTG - Free Report) is scheduled to report second-quarter fiscal 2023 results on Aug 31.
For the fiscal second quarter, management anticipates total revenues of $635 million, indicating year-over-year growth of 28%. The Zacks Consensus Estimate for revenues is pegged at $636.8 million, suggesting an increase of 28.2% on a year-over-year basis.
The Zacks Consensus Estimate for the fiscal second-quarter earnings is pegged at 22 cents per share. The company reported earnings of 14 cents per share in the prior-year quarter.
The company beat estimates in all of the last four quarters. It has a trailing four-quarter earnings surprise of 205.4%, on average.
Shares of Pure Storage have surged 30.3% in the past year against the
industry's decline of 16.8%. Factors to Note
Pure Storage is likely to benefit from the robust demand in the data-driven markets of artificial intelligence, machine learning, Internet of Things, Real-time Analytics, Log Analytics and Simulation. Recent collaborations with Snowflake, Kyndryl, and AWS are likely to expand its technology portfolio.
Apart from that, the rapid migration to remote/hybrid work setup due to the COVID-19 crisis is likely to have driven the adoption of Pure Storage’s hybrid multi-cloud offerings and cloud data services.
Continued momentum in its subscription services, namely Pure as-a-Service subscription (includes Cloud Block Store), Portworx and Evergreen Storage, is likely to have boosted Pure Storage’s fiscal second-quarter performance.
Recently, the company rolled out updates for its Portworx portfolio to help enterprises simplify and accelerate Kubernetes adoption. Also, the introduction of Evergreen//Flex to further expand Pure’s Evergreen technology bodes well.
The company is well positioned to gain from the ongoing data explosion. The company’s growing clout of FlashArray, FlashArray//C, and FlashBlade, owing to its portability, efficiency and reliability over traditional storage systems is likely to boost the top line for the next quarter. This provides customers with higher performance capabilities and enables them to run complex cloud workloads on a single platform.
The company continues to invest heavily in research and development to launch new products as well as enhance existing product lines. Recently, it launched the improved FlashBlade//S solution powered by the company’s all-QLC modular architecture that delivers high levels of performance and capacity optimization without the need for caching solutions.
A higher customer base (especially large enterprise clients) along with strength in commercial business bodes well. In the last reported quarter, Pure Storage added 360 new customers, ending the quarter with a customer count of more than 10,0000, including 54% of the Fortune 500 companies.
Higher expenses on product development amid stiff competition from other storage peers might have limited margin expansion in the to-be-reported quarter.
Pandemic-induced widespread supply-chain disruptions, component shortages and related higher costs are likely to have exerted pressure on fiscal second-quarter margins.
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.
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.
Veeva Systems Inc. ( VEEV Quick Quote VEEV - Free Report) has an Earnings ESP of +0.40% and a Zacks Rank #3. VEEV is slated to release quarterly numbers on Aug 31. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the company’s to-be-reported quarter’s earnings and revenue is pegged at $1.01 and $531 million, respectively. VEEV’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 7.4%. Shares of VEEV have lost 32.8% in the past year.
Hewlett Packard Enterprise Company ( HPE Quick Quote HPE - Free Report) currently has an Earnings ESP of +1.05% and a Zacks Rank of #3. HPE is slated to release quarterly numbers on Aug 30.
The Zacks Consensus Estimate for the company’s to-be-reported quarter’s earnings and revenue is pegged at 48 cents per share and $6.97 billion, respectively. HPE has a trailing four-quarter earnings surprise of 7.8%, on average. Shares of HPE have lost 1.9% in the past year.
Guidewire Software ( GWRE Quick Quote GWRE - Free Report) currently has an Earnings ESP of +25.00% and a Zacks Rank of #3. GWRE is slated to release quarterly numbers on Sept 6.
The Zacks Consensus Estimate for the company’s to-be-reported quarter’s earnings and revenue is pegged at negative 4 cents per share and $229 million, respectively. GWRE has a trailing four-quarter earnings surprise of 25.9%, on average. Shares of GWRE have lost 34.9% in the past year.
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