Hot Stock in the Spotlight: Pure Storage, Inc. (NYSE:PSTG)

On 14 June 2019, Pure Storage, Inc. (NYSE:PSTG) has shown upward/downward move of -1.09% and ended the last trade at $15.46. The trading volume was recorded to 2,021,088 shares as compared to average traded volume of 3,680,511 shares.

Pure Storage (PSTG) recently reported financial results for its first quarter ended April 30, 2019.

FIRST QUARTER Key Business and Financial Highlights:

  • Revenue: $326.7M, up 28% year over year
  • Gross margin: GAAP 66.2%; non-GAAP 68.1%
  • Operating margin: GAAP -29.8%; non-GAAP -9.6%

Recent Company Highlights:

During Pure’s first quarter of fiscal year 2020, the Company:

  • Reported the acquisition of Compuverde- a leading developer of file software solutions for enterprises and cloud providers. The acquisition will expand Pure Storage’s file capabilities by providing a unified storage offering, as well as empowering consumers to implement true hybrid architectures.
  • Released ObjectEngine™ for General Availability- the industry’s first data protection platform purpose-built for flash and cloud. ObjectEngine unifies cloud and on-premises with seamless, rapid backup and recovery across both on-prem and the cloud and enables consumers to modernize their entire data protection strategy to a “flash-to-flash-to-cloud” model.
  • Reported expansion of Evergreen™ Storage Service (ES2)- to enable a unified subscription model across hybrid environments. This allows organizations to leverage Pure’s best-in-class storage-as-a-service model on-premises, hosted and in the cloud, without the need to manage multiple subscriptions or purchase separate or overlapping capacity.

Financial Outlook

Second quarter fiscal 2020 guidance:

  • Revenue in the range of $389Mto $401M, or $395M at the midpoint
  • Non-GAAP gross margin in the range of 65.0% to 68.0%, or 66.5% at the midpoint
  • Non-GAAP operating margin in the range of -5.0% to -1.0%, or -3.0% at the midpoint

Full year fiscal 2020 guidance:

  • Revenue in the range of $1.70Bto $1.77B, or $1.735B at the midpoint
  • Non-GAAP gross margin in the range of 65.5% to 68.0%, or 66.75% at the midpoint
  • Non-GAAP operating margin in the range of 1.5% to 5.5%, or 3.5% at the midpoint

Analyst recommendation for this stock stands at 2.10. The volatility in the previous week has experienced by 2.11% and observed of 3.23% in the previous month.77.90% ownership is held by institutional investors while insiders hold ownership of 4.20%.

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