Pure Storage Stock Rallies as Earnings Top Estimates

Pure Storage, a supplier of flash memory-based endeavor retention products, bushed quarterly net estimates.

Courtesy of Pure Storage

Subscription gross was $171.9 million, up 31% from a twelvemonth ago. Operating currency travel improved to $123.4 million, from $95.7 cardinal a twelvemonth ago. Remaining show obligations roseate 25%, to $1.2 billion.

“It’s wide that our semipermanent strategy to supply customers with modern information services is working,” Pure CEO Charles Giancarlo said successful a statement. “We are successful a large innovation rhythm with our portfolio and our income momentum and execution person ne'er been stronger.”

For the fiscal 3rd quarter, Pure sees gross of $530 million, well up of the aged statement astatine $495 million, with non-GAAP operating income of $40 million. For the January 2022 fiscal year, the institution sees gross of $2.04 billion, supra statement astatine $1.97 billion, with $150 cardinal successful non-GAAP operating income.

In an interrogation with Barron’s, Giancarlo said it was “an unthinkable quarter, 1 of the champion ever clocked astatine the company.” He noted “strong contributions from each caller products,” and 35% of wide gross from the company’s expanding subscription business. Giancarlo says the institution has benefitted from an enlargement of endeavor IOT spending.

“Customers are conscionable becoming much accustomed to operating successful a Covid environment,” helium said. While helium notes that the Delta variant could dilatory things a small successful the near-term, helium expects the interaction volition beryllium temporary.

Giancarlo says the institution has not been meaningfully hampered by constituent shortages, though helium agrees that “the proviso concatenation is present much challenging to manage.” 

On the quality that Western Digital (WDC) is successful talks to get Kioxia, a Japanese institution that operates a ample flash representation manufacturing concern successful a associated task with Western, Giancarlo says he’s not disquieted astir a narrowing of the market. He notes that Pure is “a precise adjacent spouse of Kioxia, an important supplier to us.” But helium doesn’t deliberation the concern would alteration were the institution to beryllium acquired by Western Digital.

In precocious trading, Pure Storage is up 9.6%, to $22.97.

Write to Eric J. Savitz astatine eric.savitz@barrons.com