Pure Storage Plunges 15% on Disappointing Outlook
<p><a href='https://financialmodelingprep.com/financial-summary/PSTG'>Pure Storage, Inc. (NYSE:PSTG)</a> plunged more than 15% on Thursday after the company issued a disappointing outlook, despite beating Q4 EPS estimates.</p>
<p>Q4 EPS came in at $0.53, compared to the Street estimate of $0.38. Revenue was $810.2 million, slightly lower than the Street estimate of $811.73 million.</p>
<p>For the full 2024 year, the company expects revenue to grow mid to high-single-digits year-over-year, which is lower than its preliminary outlook of over 10% growth.</p>
<p>While new opportunities were solid, the close rate has slowed due to longer diligence/approval periods and tightening budgets. For Q1, management expects revenue to be down 10% year-over-year, but that implies very strong sequential growth for the remainder of the year to hit the full-year target. </p>
<p>On the positive side, subscription ARR growth and margins remain strong, while there is a slight uptick in the fiscal 2024 operating margin target despite lower revenue expectations.</p>
<p>The company also approved an additional $250 million stock repurchase program.</p>

NYSE:PSTG