September 30, 2023

Pure Storage Inventory Rises in Q1 Beat-and-Raise Report

Enterprise data storage company Pure storage (PSTG) late Wednesday beat Wall Street’s targets for the fiscal first quarter and led higher than views for the current period. Pure Storage stock jumped in extended trading.


The Mountain View, California-based company earned an adjusted 8 cents per share on revenue of $589.3 million for the quarter ended May 7. Analysts polled by FactSet had expected earnings of 4 cents per share on revenue of $560 million. However, on a year-over-year basis, Pure Storage revenues were down 68%, while revenues were down 5%.

The report ended the company’s streak of seven quarters of earnings growth and nine quarters of revenue growth.

On the upside, the company’s annual recurring subscription revenue was up 29% year over year to $1.2 billion in the first quarter.

For the current quarter, Pure Storage expects revenue of $680 million, up 5% from the same period last year. Wall Street had called for $658 million in revenue in the fiscal second quarter.

Pure storage inventory in consolidation pattern

In today’s after-hours trading on the stock market, Pure Storage shares rose 7% to 30.80. During Wednesday’s regular session, Pure Storage shares fell 2.1% to close at 28.79.

Pure Storage stock has been consolidating for the past 29 weeks with a buy point of 32.55, according to IBD MarketSmith charts.

“We are the clear leader in data storage and now deliver a portfolio that can meet the vast majority of all enterprise storage needs,” CEO Charles Giancarlo said in a press release.

He added, “The superior economics, performance, and operational and environmental efficiency of Pure’s product portfolio across both hard drives and SSD (solid-state drive) based, all-flash competitive offerings are now undeniable.”

HPE, NetApp also continue with quarterly results

Other enterprise technology hardware stocks rallied Wednesday based on earnings news Hewlett-Packard Enterprise (HPE) and NetApp (NTAP).

HPE shares fell 7.1% to 14.42 on Wednesday after the company presented mixed second-quarter results and outlook late Tuesday. Revenue was up 18% year over year to 52 cents per share in the quarter ended April 30, surpassing views for 49 cents. But sales rose only 4% to $6.97 billion, missing the $7.3 billion goal.

Weakness in HPE server and storage equipment sales offset strength in artificial intelligence and high-performance computing equipment.

NetApp shares rose 5.5% to 70% late Wednesday after the storage equipment maker beat expectations for its fiscal fourth quarter. It also led to higher levels for the coming full year, although the outlook for the fiscal first quarter was light.

NetApp earned an adjusted $1.54 per share, up 8% year-over-year, on revenue of $1.58 billion, down 6%.

Pure Storage Stock ranks first in Industry Group

Pure Storage stock ranks #1 out of 10 stocks in IBD’s Computer-Data Storage industry group, according to IBD Stock Checkup. PSTG shares have an IBD Composite Rating of 96 out of 99.

NetApp stock ranks third in the group with a composite rating of 81.

Hewlett Packard Enterprise is No. 12 of 58 stocks in IBD’s Computer-Tech Services industry group. HPE stock has a composite rating of 78, according to IBD Stock Checkup.

Follow Patrick Seitz on Twitter @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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