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Pure Storage (PSTG) to Report Q2 Earnings: What's in Store?
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Pure Storage, Inc (PSTG - Free Report) is scheduled to report second-quarter fiscal 2025 results on Aug 28.
PSTG expects revenues to be $755 million for the quarter, implying an increase of 9.6% from the year-ago figure. The Zacks Consensus Estimate is pegged at $756.6 million, indicating an improvement of 9.9% from the prior-year level.
The Zacks Consensus Estimate for earnings is pegged at 38 cents per share, implying a rise of 11.8% from the prior-year level.
PSTG beat on earnings in each of the trailing four quarters, the average surprise being 25%.
Factors to Note
Increasing customer demand, especially for the FlashBlade portfolio (including FlashBlade//E), is likely to have driven the top-line performance for Pure Storage in the fiscal second quarter. FlashBlade//E is an unstructured data repository solution for large-capacity data stores. Customers can also deploy this latest solution through a new service tier of PSTG's Evergreen//One Storage as-a-Service subscription.
Expansion of the Evergreen portfolio and higher subscription revenues are other growth catalysts. In the last reported quarter, Subscription service revenues (49.9% of total quarterly revenues) of $346.1 million rose 23.5% on a year-over-year basis. Our estimate for Subscription service revenues is pegged at $328.6 million, up 13.7% from the prior-year reported actuals.
Higher sales to new and existing enterprise customers across the data storage platform is another tailwind. At the end of the last reported quarter, the company’s customer count was more than 12,000, including 61% of the Fortune 500 companies.
The rapid proliferation of generative AI is expected to have boosted demand for FlashBlade and Portworx products. Increased customer adoption of Portworx storage software solution for databases, messaging and logging systems is an additional performance booster.
However, management remains concerned about the volatile macroeconomic backdrop. Price increases on NAND from suppliers might have affected margins. Intensified competition in the flash-based storage market poses an additional headwind.
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, which is exactly the case here.
PSTG currently has an Earnings ESP of +2.63% and 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 there other stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this reporting cycle.
American Eagle Outfitters, Inc. (AEO - Free Report) has an Earnings ESP of +1.97% and is set to announce quarterly figures on Aug 29. AEO currently has a Zacks Rank of 3. The Zacks Consensus Estimate for earnings and revenues is pegged at 38 cents per share and $1.3 billion, respectively. Shares of AEO have risen 34.6% in the past year.
Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +4.1% and presently carries a Zacks Rank #3. BURL is slated to release quarterly numbers on Aug 29. The Zacks Consensus Estimate for earnings and revenues is pegged at 95 cents per share and $2.42 billion, respectively. Shares of BURL have risen 73.2% in the past year.
Chewy, Inc. (CHWY - Free Report) has an Earnings ESP of +4.55% and currently carries a Zacks Rank #3. CHWY is scheduled to report quarterly earnings on Aug 28. The Zacks Consensus Estimate for earnings and revenues is pegged at 22 cents per share and $2.86 billion, respectively. Shares of CHWY have risen 3% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Pure Storage (PSTG) to Report Q2 Earnings: What's in Store?
Pure Storage, Inc (PSTG - Free Report) is scheduled to report second-quarter fiscal 2025 results on Aug 28.
PSTG expects revenues to be $755 million for the quarter, implying an increase of 9.6% from the year-ago figure. The Zacks Consensus Estimate is pegged at $756.6 million, indicating an improvement of 9.9% from the prior-year level.
The Zacks Consensus Estimate for earnings is pegged at 38 cents per share, implying a rise of 11.8% from the prior-year level.
Pure Storage, Inc. Price and EPS Surprise
Pure Storage, Inc. price-eps-surprise | Pure Storage, Inc. Quote
PSTG beat on earnings in each of the trailing four quarters, the average surprise being 25%.
Factors to Note
Increasing customer demand, especially for the FlashBlade portfolio (including FlashBlade//E), is likely to have driven the top-line performance for Pure Storage in the fiscal second quarter. FlashBlade//E is an unstructured data repository solution for large-capacity data stores. Customers can also deploy this latest solution through a new service tier of PSTG's Evergreen//One Storage as-a-Service subscription.
Expansion of the Evergreen portfolio and higher subscription revenues are other growth catalysts. In the last reported quarter, Subscription service revenues (49.9% of total quarterly revenues) of $346.1 million rose 23.5% on a year-over-year basis. Our estimate for Subscription service revenues is pegged at $328.6 million, up 13.7% from the prior-year reported actuals.
Higher sales to new and existing enterprise customers across the data storage platform is another tailwind. At the end of the last reported quarter, the company’s customer count was more than 12,000, including 61% of the Fortune 500 companies.
The rapid proliferation of generative AI is expected to have boosted demand for FlashBlade and Portworx products. Increased customer adoption of Portworx storage software solution for databases, messaging and logging systems is an additional performance booster.
However, management remains concerned about the volatile macroeconomic backdrop. Price increases on NAND from suppliers might have affected margins. Intensified competition in the flash-based storage market poses an additional headwind.
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, which is exactly the case here.
You can see the complete list of today’s Zacks #1 Rank stocks here.
PSTG currently has an Earnings ESP of +2.63% and 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 there other stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this reporting cycle.
American Eagle Outfitters, Inc. (AEO - Free Report) has an Earnings ESP of +1.97% and is set to announce quarterly figures on Aug 29. AEO currently has a Zacks Rank of 3. The Zacks Consensus Estimate for earnings and revenues is pegged at 38 cents per share and $1.3 billion, respectively. Shares of AEO have risen 34.6% in the past year.
Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +4.1% and presently carries a Zacks Rank #3. BURL is slated to release quarterly numbers on Aug 29. The Zacks Consensus Estimate for earnings and revenues is pegged at 95 cents per share and $2.42 billion, respectively. Shares of BURL have risen 73.2% in the past year.
Chewy, Inc. (CHWY - Free Report) has an Earnings ESP of +4.55% and currently carries a Zacks Rank #3. CHWY is scheduled to report quarterly earnings on Aug 28. The Zacks Consensus Estimate for earnings and revenues is pegged at 22 cents per share and $2.86 billion, respectively. Shares of CHWY have risen 3% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.