Tuesday, May 23, 2017

What's in Store for Pure Storage (PSTG) in Q1 Earnings?

#PureStorage Inc. PSTG is set to release its first-quarter fiscal 2018 earnings on May 24. In the last quarter, the company reported a positive earnings surprise of 12.5%. We note that the company has delivered positive surprises in three of the last four quarters resulting in an average positive surprise of 9.57%. The company reported non-GAAP net loss of 21 cents per share (including stock-based compensation) in the fourth quarter of fiscal 2017, narrower than the Zacks Consensus Estimate of a loss of 24 cents. Total revenue was $227.9 million, which was up a significant 51.7% year over year and ahead of the Zacks Consensus Estimate of $224 million. However, improving results failed to provide significant momentum to the share price. We note that Pure Storage has underperformed the Zacks Computer- Storage Devices industry on a year-to-date basis. While the industry gained 14.8%, the stock has declined 12.1% over the same period.

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