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Why Pure Storage Stock Rocketed Higher This Week

By Daniel Sparks – Aug 27, 2021 at 4:54PM

Key Points

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The specialist in enterprise data storage platforms reported an outstanding fiscal second quarter.

What happened

Shares of enterprise data storage platform Pure Storage (PSTG -0.89%) jumped this week. By the end of the week, shares had risen about 23%.

The stock's gain was driven almost entirely by the company's stronger-than-expected fiscal second-quarter results.

A chart showing a stock price rising sharply.

Image source: Getty Images.

So what

The tech company reported fiscal second-quarter revenue of $497 million, up 23% year over year. Analysts on average were expecting revenue of $469 million. Adjusted earnings per share also beat analysts' consensus forecast; the key adjusted profitability metric came in at $0.06, while analysts were modeling for $0.05. 

"Our outstanding financial performance this quarter reflected strong sales execution and our long-standing practice of providing leading edge solutions and best-in-class services to our customers," CFO Kevan Krysler said in the company's earnings release.

Now what

Guidance was better than expected, too. The company said it expects fiscal third-quarter and full-year 2022 revenue of $530 million and $2.04 billion, respectively. Analysts, on average, expected revenue of $495 million and $1.96 billion, respectively, for these periods.

Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Stocks Mentioned

Pure Storage Stock Quote
Pure Storage
PSTG
$29.02 (-0.89%) $0.26

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