In its upcoming report, Pure Storage (PSTG) is predicted by Wall Street analysts to post quarterly earnings of $0.59 per share, reflecting an increase of 18% compared to the same period last year. Revenues are forecasted to be $958.14 million, representing a year-over-year increase of 15.3%.
Over the last 30 days, there has been a downward revision of 2.8% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific Pure Storage metrics that are commonly monitored and projected by Wall Street analysts.
The average prediction of analysts places 'Revenue- Product' at $510.23 million. The estimate points to a change of +12.2% from the year-ago quarter.
According to the collective judgment of analysts, 'Revenue- Subscription services' should come in at $447.07 million. The estimate suggests a change of +18.8% year over year.
The consensus estimate for 'Subscription Annual Recurring Revenue (ARR)' stands at $1.88 billion. Compared to the present estimate, the company reported $1.60 billion in the same quarter last year.
Analysts predict that the 'Remaining Performance Obligations (RPO)' will reach $2.82 billion. Compared to the current estimate, the company reported $2.40 billion in the same quarter of the previous year.
The consensus among analysts is that 'Non-GAAP Gross profit- Subscription services' will reach $342.56 million. The estimate compares to the year-ago value of $291.33 million.
Analysts expect 'Non-GAAP Gross profit- Product' to come in at $343.76 million. The estimate compares to the year-ago value of $306.39 million.
View all Key Company Metrics for Pure Storage here>>>
Pure Storage shares have witnessed a change of -12.8% in the past month, in contrast to the Zacks S&P 500 composite's -0.3% move. With a Zacks Rank #3 (Hold), PSTG is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Pure Storage, Inc. (PSTG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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