Latest news with #PureStorage
Yahoo
2 days ago
- Business
- Yahoo
Hewlett Packard Enterprise (HPE) Q1 Earnings Report Preview: What To Look For
Enterprise technology company Hewlett Packard Enterprise (NYSE:HPE) will be reporting results tomorrow afternoon. Here's what investors should know. Hewlett Packard Enterprise beat analysts' revenue expectations by 0.5% last quarter, reporting revenues of $7.85 billion, up 16.3% year on year. It was a slower quarter for the company, with a significant miss of analysts' EPS guidance for next quarter estimates and a miss of analysts' EPS estimates. Is Hewlett Packard Enterprise a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Hewlett Packard Enterprise's revenue to grow 3.5% year on year to $7.46 billion, in line with the 3.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hewlett Packard Enterprise has missed Wall Street's revenue estimates four times over the last two years. Looking at Hewlett Packard Enterprise's peers in the hardware & infrastructure segment, some have already reported their Q1 results, giving us a hint as to what we can expect. IonQ posted flat year-on-year revenue, beating analysts' expectations by 0.9%, and Pure Storage reported revenues up 12.3%, topping estimates by 1.1%. IonQ traded up 9.3% following the results while Pure Storage was down 2.6%. Read our full analysis of IonQ's results here and Pure Storage's results here. There has been positive sentiment among investors in the hardware & infrastructure segment, with share prices up 4.3% on average over the last month. Hewlett Packard Enterprise is up 4.1% during the same time and is heading into earnings with an average analyst price target of $19.98 (compared to the current share price of $17.35). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Pure Storage (PSTG) Stock Trades Down, Here Is Why
Shares of data storage solutions provider Pure Storage (NYSE:PSTG) fell 5.8% in the afternoon session after the company reported underwhelming first quarter 2025 results as its subscription ARR in the quarter missed. The slowdown in subscription ARR, which rose 18%, slower than the 20% range seen in previous quarters, raised questions about the pace of recurring revenue growth. On the other hand, revenue and EPS exceeded expectations and its revenue guidance for the next quarter slightly exceeded Wall Street's estimates. Still, we think this was a mixed quarter. The company also announced that CFO Kevan Krysler will step down after more than five years, marking a leadership transition during a pivotal phase in the shift toward subscriptions. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Pure Storage? Access our full analysis report here, it's free. Pure Storage's shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was about 1 month ago when the stock gained 7.7% after President Trump clarified that he had no intention of removing Federal Reserve Chair Jerome Powell, a statement that helped calm markets. Earlier remarks had sparked fears of political interference in decision making at the central bank. With Trump walking back his earlier comments, investors likely felt more assured that monetary policy decisions will continue to be guided by data, not drama. That kept the Fed's word credible, and more importantly, gave investors a steadier compass to figure out where rates and the markets were headed next. Adding to the positive news, the president made constructive comments on US-China trade talks, noting that the tariffs imposed on China were "very high, and it won't be that high. ... No, it won't be anywhere near that high. It'll come down substantially. But it won't be zero." Also, a key force at the center of the stock market's massive two-day rally was the frantic behavior of short sellers covering their losses. Hedge fund short sellers recently added more bearish wagers in both single stocks and securities tied to macro developments after the whipsaw early April triggered by President Donald Trump's tariff rollout and abrupt 90-day pause, according to Goldman Sachs' prime brokerage data. The increased short position in the market created an environment prone to dramatic upswings due to this artificial buying force. A short seller borrows an asset and quickly sells it; when the security decreases in price, they buy it back more cheaply to profit from the difference. Pure Storage is down 16.8% since the beginning of the year, and at $51.99 per share, it is trading 28.2% below its 52-week high of $72.37 from January 2025. Investors who bought $1,000 worth of Pure Storage's shares 5 years ago would now be looking at an investment worth $2,952. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
PSTG Q1 Earnings Call: Subscription Growth, New Product Launches, and CFO Transition Shape Outlook
Data storage solutions provider Pure Storage (NYSE:PSTG) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 12.3% year on year to $778.5 million. Its non-GAAP EPS of $0.29 per share was 17.1% above analysts' consensus estimates. Is now the time to buy PSTG? Find out in our full research report (it's free). Revenue: $778.5 million (12.3% year-on-year growth) Adjusted EPS: $0.29 vs analyst estimates of $0.25 (17.1% beat) Adjusted Operating Income: $82.74 million vs analyst estimates of $81.56 million (10.6% margin, 1.5% beat) Revenue Guidance for Q2 CY2025 is $845 million at the midpoint, roughly in line with what analysts were expecting Operating Margin: -4%, up from -6% in the same quarter last year Annual Recurring Revenue: $1.71 billion at quarter end, up 18.4% year on year Billings: $810.7 million at quarter end, up 15.7% year on year Market Capitalization: $18.04 billion Pure Storage's first quarter performance was driven by increased adoption of its subscription-based storage offerings and expansion across both traditional and modern workloads. Management attributed growth to the strong uptake of solutions such as Evergreen//One and the launch of new platforms like Fusion 2.0 and FlashBlade//EXA. CEO Charlie Giancarlo emphasized how broad AI-related demand and modernization initiatives were central to the company's momentum, citing customer interest in unified data management and real-time information access. He explained that customers are seeking ways to reduce complexity and enhance reliability, particularly as they migrate away from legacy systems and adopt modern virtualization strategies. Looking forward, Pure Storage's guidance is shaped by ongoing investment in high-performance storage for AI workloads, expansion of its service-based offerings, and continued collaboration with hyperscale cloud providers. Management acknowledged that macroeconomic uncertainty and tariff-related risks could impact visibility in the second half of the year. CFO Kevan Krysler stressed that the company's pricing predictability and ability to absorb tariff costs through operational efficiencies position it to maintain customer subscription rates. Giancarlo added, 'We remain confident in our ability to outpace the competition,' as the company focuses on growing market share and executing its hyperscale strategy. Management credited the quarter's results to new product launches, deeper customer engagement in AI workloads, and the continued shift toward subscription revenue. The departure of CFO Kevan Krysler was also highlighted as a notable leadership transition. AI-driven customer wins: Pure Storage saw a significant increase in customer activity related to artificial intelligence (AI), notably supporting both public and private GPU-driven machine learning workloads. The company's unified platform was cited as a differentiator for handling diverse AI use cases, including inference and data retrieval tasks, without requiring multiple products. Fusion 2.0 and FlashBlade//EXA rollout: The launch of Fusion 2.0, which enables software-defined data management across an enterprise, and the introduction of FlashBlade//EXA for high-performance computing and AI, were central to the quarter. Management noted strong early customer engagement with Fusion 2.0 and positioned FlashBlade//EXA as targeting large-scale, high-demand environments like GPU clusters. Expansion of subscription services: Evergreen//One, Pure Storage's storage-as-a-service model, showed strong growth in total contract value sales and recurring revenue. The company highlighted customer demand for predictable pricing and robust service level agreements, especially as tariff uncertainties grew more prominent. Hyperscale and cloud partnerships: Pure Storage advanced its collaboration with Meta, progressing through production validation for large-scale deployments. The company also announced a new partnership with SK Hynix to optimize flash storage for energy-efficient hyperscale data centers, reinforcing its position in the evolving cloud infrastructure market. Leadership transition: CFO Kevan Krysler's planned departure, after five years with the company, was announced. Management emphasized succession planning and Krysler's contributions to the evolution of Pure's subscription business and overall financial strategy. Pure Storage's outlook is anchored by increased adoption of AI-driven storage, growth in subscription services, and continued expansion in the hyperscale segment. AI and high-performance computing demand: Management expects continued growth from organizations building large-scale GPU clusters and deploying AI models, driving demand for platforms like FlashBlade//EXA and unified data clouds. Subscription and service model resilience: The company's Evergreen//One offering is positioned as a buffer against macroeconomic and tariff uncertainties, with management reiterating that customer rates will remain stable even if supply chain costs rise. This model is expected to support recurring revenue stability. Hyperscale customer ramp: Pure Storage's work with Meta and other hyperscalers is anticipated to contribute meaningfully in the second half of the year, though management noted the long validation cycles and dependency on broader data center design timelines as sources of uncertainty. As we monitor Pure Storage's progress in coming quarters, our team will track (1) the pace of AI and hyperscale revenue contributions, especially from Meta and new cloud partnerships, (2) sustained growth in subscription and service-based offerings amid potential tariff pressures, and (3) customer adoption rates for recently launched platforms like Fusion 2.0 and FlashBlade//EXA. Execution on these fronts will signal whether Pure delivers on strategic priorities despite evolving macro conditions. Pure Storage currently trades at a forward P/E ratio of 30.3×. In the wake of earnings, is it a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Pure Storage Inc (PSTG) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue Growth: 12% increase in Q1 revenue. Operating Profit: $83 million with an operating margin of 10.6%. Storage-as-a-Service TCV Sales: Increased 70% to $95 million. Subscription Services Revenue: $406 million, up 17%. Annual Recurring Revenue (ARR): Grew 18% to $1.7 billion. Total Remaining Performance Obligations (RPO): Increased 17% to $2.7 billion. US Revenue: $531 million, a 9% increase. International Revenue: $248 million, a 21% increase year over year. Gross Margin: Improved to 70.9%, with subscription services margin at 77.2%. Product Margin: Rose 1.1 points sequentially to 64%. Operating Cash Flow: $284 million. Capital Investments: $72 million. Share Repurchases: $120 million returned through 2.5 million share repurchases. Q2 Revenue Guidance: Expected to be $845 million, a 10.6% year-over-year increase. Q2 Operating Profit Guidance: Expected to be $125 million with an operating margin of 14.8%. Warning! GuruFocus has detected 3 Warning Sign with PSTG. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pure Storage Inc (NYSE:PSTG) delivered double-digit revenue growth of 12% in Q1, with strong operating profit and margin performance. The introduction of Fusion 2.0 has been well-received, with nearly 100 customers using or testing the software to manage their data infrastructure. The launch of FlashBlade//EXA positions Pure Storage Inc (NYSE:PSTG) as a leader in high-performance storage for AI and high-performance computing environments. Strong growth in Storage-as-a-Service solutions, with Q1 TCV sales jumping 70% to $95 million, driven by large Evergreen//One deals. Partnerships with major companies like Nutanix and Microsoft enhance Pure Storage Inc (NYSE:PSTG)'s virtualization solutions, providing modern, scalable environments for high-demand workloads. The macroeconomic environment remains uncertain, with potential impacts from tariffs and economic conditions in the second half of the year. The departure of CFO Kevan Krysler introduces potential transitional challenges as the company searches for a new financial leader. Despite strong performance, there is less visibility and predictability for the second half of the fiscal year due to market dynamics. The hyperscale collaboration with Meta is progressing slowly, with a long design cycle impacting the timeline for potential revenue recognition. Subscription margins could face pressure if higher tariff costs materialize, although the company plans to absorb these costs efficiently. Q: Can you provide an update on the hyperscale opportunity with Meta and how it is evolving from pilot to production? A: Charles Giancarlo, CEO: The process with Meta is progressing as expected, aligning with their 1.5 to 2-year design cycle for their next-generation data center. We are on track to deliver the anticipated 1 to 2 exabytes in the second half of the year. Discussions with other hyperscalers are also progressing steadily, though it's hard to predict when they will result in a fully validated design win. Q: How should we think about the opportunity and financial implications of the newly announced FlashBlade//EXA offering? A: Charles Giancarlo, CEO: FlashBlade//EXA targets niche markets like government sovereign clouds and large-scale GPU clusters. While not as large as the entire enterprise market, it can still be substantial. The margins are expected to be at or above our standard company margins. Rob Lee, CTO, added that EXA builds on the success of FlashBlade//S, targeting the next level of scale in AI environments. Q: Are you seeing any changes in buyer behavior due to macroeconomic uncertainties, such as a shift towards less expensive options or increased adoption of Evergreen//One? A: Charles Giancarlo, CEO: We haven't observed significant changes in customer sentiment or substantial pull-ins in Q1. While the second half of the year is less predictable due to tariffs and economic conditions, the first half has not shown significant shifts. Kevan Krysler, CFO, noted that Evergreen//One could benefit over time as it absorbs tariff costs without increasing subscription rates. Q: How does the revenue recognition work for the 1 to 2 exabytes from Meta in the second half? A: Kevan Krysler, CFO: There will be some de minimis revenue contribution from Meta in the second half, which has been considered in our annual guidance. The revenue model will likely be a licensing fee, not reflecting the full gross value. Q: Can you clarify the impact of potential higher tariff costs on subscription margins? A: Kevan Krysler, CFO: We are efficient in leveraging technology and managing tariffs due to our agile manufacturing and supply chain. We do not foresee a significant burden on our subscription gross margins from potential tariff costs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
6 days ago
- Business
- Yahoo
Nutanix Inc (NTNX) Q3 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue: $639 million, 22% year-over-year growth. Annual Recurring Revenue (ARR): $2.14 billion, 18% year-over-year growth. Net Dollar-Based Retention Rate (NRR): 110%, flat quarter-over-quarter. Average Contract Duration: 3.1 years, slightly higher than expectations. Non-GAAP Gross Margin: 88.2%. Non-GAAP Operating Margin: 21.5%, higher than guided range of 17% to 18%. Non-GAAP Net Income: $125 million, EPS of $0.42 per share. GAAP Net Income: $63 million, EPS of $0.22 per share. Free Cash Flow: $203 million, 32% free cash flow margin. Cash, Cash Equivalents, and Short-term Investments: $1.882 billion. Share Repurchase: $38 million worth of common stock repurchased. Warning! GuruFocus has detected 5 Warning Sign with NTNX. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Nutanix Inc (NASDAQ:NTNX) reported third-quarter results that exceeded their guidance, with revenue reaching $639 million, representing a 22% year-over-year growth. The company achieved an 18% year-over-year growth in Annual Recurring Revenue (ARR), reaching $2.14 billion. Nutanix Inc (NASDAQ:NTNX) saw strong new logo growth across all customer segments, including significant wins with large organizations. The company announced several strategic partnerships and product enhancements, including a new partnership with Pure Storage and expanded support for Google Cloud. Nutanix Inc (NASDAQ:NTNX) reported a strong free cash flow of $203 million, representing a free cash flow margin of 32%. The macroeconomic environment remains dynamic, with some variability in the U.S. federal business due to longer deal cycles. The company noted that the competitive landscape, particularly with VMware, remains challenging, with some customers hesitant to switch. Nutanix Inc (NASDAQ:NTNX) acknowledged that their Kubernetes platform is still in early stages, with contributions to revenue expected to grow over time. The company anticipates increased investments in sales, marketing, and R&D, which may impact operating margins in the short term. There is a potential risk of variability in large deal closures, which could affect quarterly revenue recognition. Q: Can you discuss the macroeconomic environment and its impact on Nutanix's business, particularly regarding deal cycles and the federal sector? A: Rajiv Ramaswami, President and CEO, explained that the macroeconomic environment remains dynamic, with recent changes affecting the federal business, leading to longer deal cycles and variability. However, Nutanix remains optimistic about opportunities in the federal sector due to its platform's focus on modernization and cost reduction. Q: How is Nutanix's Kubernetes platform progressing, and what is its contribution to the business? A: Rajiv Ramaswami noted that while it's still early days for the Kubernetes platform, initial progress and product-market fit are promising. The contribution to revenue is currently small but growing, with continued development expected over the next few years. Q: What is the outlook for Nutanix's operating margin, and are there any timing factors affecting it? A: Rukmini Sivaraman, CFO, stated that the operating margin guide has increased due to timing of hiring and higher revenue. While some hiring was delayed, investments in sales, marketing, and R&D are expected to ramp up in Q4. The pace of margin improvement seen this year may not be sustainable, but Nutanix aims to drive leverage through productivity improvements and prudent investments. Q: Can you explain the difference in growth rates between ARR and revenue? A: Rukmini Sivaraman explained that revenue is a flow metric affected by contract duration and large deals with phased deployment, while ARR is a stock metric representing the annualized view of the installed base. Variability in revenue can occur due to upfront license recognition and large deal timing. Q: How is Nutanix performing in terms of competitive wins against VMware, and what is the pricing environment like? A: Rajiv Ramaswami highlighted strong new logo growth, with many customers starting with Nutanix's hypervisor. The pricing environment remains stable, with Nutanix offering a flexible, a la carte approach compared to VMware's full stack. Nutanix continues to gain traction with customers seeking alternatives to VMware. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
