Pure Storage shares tumble on a wider-than-expected loss and weak guidance
- The company missed on revenue for the quarter and gave a disappointing forecast.
- Pure shares were up 28% for the year as of Tuesday's close.
Pure Storage shares fell as much as 19% in extended trading on Tuesday after the provider of data storage hardware and services reported a wider loss than analysts expected and also gave disappointing guidance.
Here are the key numbers:
- Earnings: Loss of 11 cents per share, excluding certain items, vs. loss of 8 cents per share as expected by analysts, according to Refinitiv.
- Revenue: $326.7 million, vs. $333.1 million as expected by analysts, according to Refinitiv.
Revenue in the fiscal first quarter, which ended April 30, rose 28% from a year earlier, Pure said.
"While we are growing well above the industry average, we were not satisfied with our results this quarter," Pure CEO Charlie Giancarlo said on a Tuesday conference call with analysts.
Pure said that in the second quarter of fiscal 2020 it expects $395 million in revenue, trailing the $396.6 million consensus estimate among analysts polled by Refinitiv. For the full year, Pure lowered its guidance, saying it sees $1.735 billion in revenue, below the Refinitiv estimate, which was $1.766 billion.
Pure, which sells flash storage for data centers, competes with the likes of Dell EMC, Hitachi Vantara, Hewlett Packard Enterprise, IBM and NetApp. Pure had around 6,200 customers in the quarter, up 29% year over year.
Pure's stock is up 28% since the beginning of the year as of Tuesday's close. In the fiscal first quarter Pure announced the acquisition of file software company Compuverde; terms weren't disclosed.
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