Yahoo Finance Why Shares of Pure Storage Jumped Today
What happened
Shares of Pure Storage (NYSE: PSTG) rose on Thursday after the data solutions provider reported its second-quarter results. Pure Storage beat analyst estimates across the board, which was enough good news to overcome weak third-quarter guidance. The stock was up about 14.8% at 1:30 p.m. EST.
So what
Pure Storage reported second-quarter revenue of $396.3 million, up 28% year over year and nearly $4 million above the average analyst estimate. Product revenue grew 24.5% to $300.1 million, while support subscription revenue jumped 42% to $96.2 million. The company added 450 new customers, a record for the second quarter.
Image source: Getty Images.
Non-GAAP (adjusted) earnings per share came in at $0.01, flat from the prior-year period and $0.05 better than analysts were expecting. The company lost $0.26 per share on a GAAP basis, also flat from the second quarter of 2018.
"Our significant growth this quarter and continued market share gains are the result of creating a modern data experience for our customers," said Pure Storage CEO Charles Giancarlo.
Now what
Pure Storage expects to produce revenue between $434 million and $446 million in the third quarter and between $1.645 billion and $1.715 billion for the full year. Analysts were expecting third-quarter revenue guidance of $466.2 million and full-year revenue guidance of $1.72 billion.
While Pure Storage's guidance didn't quite live up to analyst expectations, strong second-quarter results were enough to send the stock higher.
More From The Motley Fool
Timothy Green has no position in any of the stocks mentioned. The Motley Fool recommends Pure Storage. The Motley Fool has a disclosure policy.
This article was originally published on Fool.com
