The upcoming report from Pure Storage (PSTG) is expected to reveal quarterly earnings of $0.65 per share, indicating an increase of 44.4% compared to the year-ago period. Analysts forecast revenues of $1.03 billion, representing an increase of 17.2% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 5% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
In light of this perspective, let's dive into the average estimates of certain Pure Storage metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts predict that the 'Revenue- Product' will reach $577.15 million. The estimate indicates a year-over-year change of +16.7%.
It is projected by analysts that the 'Revenue- Subscription services' will reach $452.55 million. The estimate indicates a year-over-year change of +17.5%.
Analysts forecast 'Subscription Annual Recurring Revenue (ARR)' to reach $1.94 billion. Compared to the present estimate, the company reported $1.70 billion in the same quarter last year.
The average prediction of analysts places 'Remaining Performance Obligations (RPO)' at $3.14 billion. The estimate compares to the year-ago value of $2.60 billion.
Based on the collective assessment of analysts, 'Non-GAAP Gross profit- Subscription services' should arrive at $343.24 million. Compared to the present estimate, the company reported $297.42 million in the same quarter last year.
According to the collective judgment of analysts, 'Non-GAAP Gross profit- Product' should come in at $411.84 million. Compared to the present estimate, the company reported $311.41 million in the same quarter last year.
View all Key Company Metrics for Pure Storage here>>>
Over the past month, shares of Pure Storage have returned +3% versus the Zacks S&P 500 composite's -0.8% change. Currently, PSTG carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. 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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