Data storage solutions provider Pure Storage (NYSE: PSTG) will be reporting earnings tomorrow after market close. Here’s what you need to know.
Pure Storage beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $879.8 million, up 11.4% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EPS estimates but billings in line with analysts’ estimates.
Is Pure Storage a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Pure Storage’s revenue to grow 11.1% year on year to $770.3 million, slowing from the 17.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Pure Storage has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average.
Looking at Pure Storage’s peers in the hardware & infrastructure segment, some have already reported their Q1 results, giving us a hint as to what we can expect. IonQ posted flat year-on-year revenue, beating analysts’ expectations by 0.9%, and Super Micro reported revenues up 19.5%, falling short of estimates by 2.7%. IonQ traded up 9.3% following the results while Super Micro was down 1.2%.
Read our full analysis of IonQ’s results here and Super Micro’s results here.
There has been positive sentiment among investors in the hardware & infrastructure segment, with share prices up 6.2% on average over the last month. Pure Storage is up 22.2% during the same time and is heading into earnings with an average analyst price target of $69.16 (compared to the current share price of $55.45).
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