S&P 500   4,397.94 (-1.89%)
DOW   34,265.37 (-1.30%)
QQQ   351.69 (-2.77%)
AAPL   162.41 (-1.28%)
MSFT   296.03 (-1.85%)
FB   303.17 (-4.23%)
GOOGL   2,607.03 (-2.22%)
AMZN   2,852.86 (-5.95%)
TSLA   943.90 (-5.26%)
NVDA   233.74 (-3.21%)
BABA   123.23 (-5.95%)
NIO   27.35 (-6.11%)
AMD   118.81 (-2.53%)
CGC   7.29 (-3.57%)
MU   81.93 (-3.69%)
GE   96.30 (-1.98%)
T   26.61 (-1.52%)
F   20.65 (-4.62%)
DIS   137.38 (-6.94%)
AMC   17.97 (-0.55%)
PFE   52.79 (-2.33%)
ACB   4.46 (-6.11%)
BA   205.44 (-4.09%)
S&P 500   4,397.94 (-1.89%)
DOW   34,265.37 (-1.30%)
QQQ   351.69 (-2.77%)
AAPL   162.41 (-1.28%)
MSFT   296.03 (-1.85%)
FB   303.17 (-4.23%)
GOOGL   2,607.03 (-2.22%)
AMZN   2,852.86 (-5.95%)
TSLA   943.90 (-5.26%)
NVDA   233.74 (-3.21%)
BABA   123.23 (-5.95%)
NIO   27.35 (-6.11%)
AMD   118.81 (-2.53%)
CGC   7.29 (-3.57%)
MU   81.93 (-3.69%)
GE   96.30 (-1.98%)
T   26.61 (-1.52%)
F   20.65 (-4.62%)
DIS   137.38 (-6.94%)
AMC   17.97 (-0.55%)
PFE   52.79 (-2.33%)
ACB   4.46 (-6.11%)
BA   205.44 (-4.09%)
S&P 500   4,397.94 (-1.89%)
DOW   34,265.37 (-1.30%)
QQQ   351.69 (-2.77%)
AAPL   162.41 (-1.28%)
MSFT   296.03 (-1.85%)
FB   303.17 (-4.23%)
GOOGL   2,607.03 (-2.22%)
AMZN   2,852.86 (-5.95%)
TSLA   943.90 (-5.26%)
NVDA   233.74 (-3.21%)
BABA   123.23 (-5.95%)
NIO   27.35 (-6.11%)
AMD   118.81 (-2.53%)
CGC   7.29 (-3.57%)
MU   81.93 (-3.69%)
GE   96.30 (-1.98%)
T   26.61 (-1.52%)
F   20.65 (-4.62%)
DIS   137.38 (-6.94%)
AMC   17.97 (-0.55%)
PFE   52.79 (-2.33%)
ACB   4.46 (-6.11%)
BA   205.44 (-4.09%)
S&P 500   4,397.94 (-1.89%)
DOW   34,265.37 (-1.30%)
QQQ   351.69 (-2.77%)
AAPL   162.41 (-1.28%)
MSFT   296.03 (-1.85%)
FB   303.17 (-4.23%)
GOOGL   2,607.03 (-2.22%)
AMZN   2,852.86 (-5.95%)
TSLA   943.90 (-5.26%)
NVDA   233.74 (-3.21%)
BABA   123.23 (-5.95%)
NIO   27.35 (-6.11%)
AMD   118.81 (-2.53%)
CGC   7.29 (-3.57%)
MU   81.93 (-3.69%)
GE   96.30 (-1.98%)
T   26.61 (-1.52%)
F   20.65 (-4.62%)
DIS   137.38 (-6.94%)
AMC   17.97 (-0.55%)
PFE   52.79 (-2.33%)
ACB   4.46 (-6.11%)
BA   205.44 (-4.09%)

Pure Storage Stock is Ready for Follow-Through Lift-Off

Thursday, December 2, 2021 | Jea Yu
Pure Storage Stock is Ready for Follow-Through Lift-Off   Enterprise data storage solutions provider Pure Storage, Inc. (NYSE: PSTG) stock has been rallying to yearly highs on the heels of its Q3 2021 earnings report and raised guidance. The post-pandemic surge in both top and bottom line vindicate its strategy. The Company enjoys much acclaim as a leading storage company in the Gartner Magic Quadrant. Pure Storage continues to convert and grow its subscription services as revenues climbed by 38% with non-GAAP margins at 72.1%. The Company experienced high demand in across its portfolio during the reopening. The dynamic global chip and supply chain disruptions are well under control as the Company raised its fiscal 2022 full-year top line guidance. Prudent investors seeking exposure to the data storage segment can watch for opportunistic pullbacks in shares of Pure Storage.

Q3 Fiscal 2021 Earnings Release

On Nov. 23, 2021, Pure Storage released its fiscal third-quarter 2021 results for the quarter ending October 2021. The Company reported an earnings-per-share (EPS) profit of $0.22 excluding non-recurring items versus consensus analyst estimates for $0.12, a $0.10 beat. Revenues grew 37.1% year-over-year (YoY) to $562.74 million beating analyst estimates for $530.66 million. Subscription service revenues rose 38% YoY to $187.8 million. Subscription annual recurring revenues grew 30% YoY to $788.3 million. Remaining performance obligations grew 27% YoY to $1.2 billion. The Company closed the quarter with $1.4 billion in cash and investments. The Company has been a Gartner Magic Quadrant storage leader for eight consecutive quarters.

Raised Top Line Guidance

The Company raised its fiscal Q4 2021 revenues to come in around $640 million versus $602.34 consensus analyst estimates. Pure Storage expects full-year fiscal 2022 revenues to come in around $2.1 billion versus $2.04 billion analyst estimates.

Conference Call Takeaways

Pure Storage CEO, Charlie Giancarlo set the tone, “With a sustained and steady growth across all key regions, products and customer segments, Pure continues to take share in this large and growing market. Our strategy to deliver a modern data experience to our customers and partners continues to lead the industry with new firsts almost every quarter as we deliver on all aspects of the modern data experience. Modernizing data infrastructure, operation and application, this quarter we announced the latest additions to our product portfolio that brings storage and applications even closer together Pure Fusion, our new software defined multi-cloud self-service storage environment is a major advance that will allow customers to better manage their data in a multi-cloud environment, while enabling developers to deploy sophisticated data storage services on demand. We also announced Portworx Data Services, which will further allow those self-same developers to quickly deploy production grade data services on Kubernetes, together with advances and our Pure1 digital experience, Pure is enabling a cloud operating model for enterprises everywhere and engagement has been strong. Our next announcement on December 8, will push infrastructure modernization even further and extend the breadth of our FlashArray platform. Today all of Pure’s capabilities are available as a service, we continue to see strong growth across Evergreen, Pure as a service and Portworx, which together represent a third of our revenues, Gartner has once again validated Pure’s leadership in both of their Storage Magic Quadrant, recognizing our execution and vision in primary storage and in the rapidly growing file and object market for unstructured data, given our speed and breadth of innovation, it should not be a surprise that more and more customers are purchasing the full Pure portfolio”.

Achieving Green and ESG Objectives

CEO Giancarlo addressed how Pure Storage has been helping clients achieve ESG goals, “Our global customers and prospects are beginning to appreciate the power and green advantage of Pure and by power I am not referring to IOPS or throughput, and by green I am not referring to our evergreen subscription. Simply speaking, Pure’s products use dramatically less energy and create far less waste than competitive offerings. We take this expanded scope and responsibility very seriously and look forward to publishing our first environmental, social and governance report early next calendar year, when customers learn how much our solutions reduce energy, space, and waste in their environmental footprint. Pure becomes a true partner in helping them achieve their ESG objectives. Supply chains on everyone's mind, and no company is immune to this disruption. As we have reported in the past, Pure has built a very robust supply chain based on strong, open, and trusted relationships with our partners. Our strategy incorporates manufacturing and operations in multiple sites and on multiple continents to enable flexibility, resilience, and global responsiveness.”

Pure Storage Stock is Ready for Follow-Through Lift-Off

PSTG Opportunistic Pullback Levels

Using the rifle charts on the weekly and daily time frames provide a precision view of the price action playing field for PSTG stock. The weekly rifle chart initially peaked off $31.72 Fibonacci (fib) level on the earnings reaction. The weekly 5-period moving average is catching up rising at $28.06 on the pup breakout with 15-period MA rising at $26.27. The weekly pup breakout has upper weekly Bollinger Bands (BBs) at $33.82. The weekly stochastic is stalling at the 90-band. The weekly market structure high (MSH) trigger forms on a breakdown below $26.73. The weekly market structure low (MSL) buy triggered above $19.08 level. The daily rifle chart has been in a BB compression going into earnings. This caused the BBs to expand on the gap while the daily 5-period MA attempts to catch up at $28.65. Shares overshot the daily upper BBs at $30.56 as the stochastic crosses back up. A retest and bounce of the daily 5-period MA can trigger a stochastic mini pup. Prudent investors can watch for opportunistic pullback levels at the $28.34 fib, $27.15 fib, $25.57 fib, $24.32 fib, $22.58 fib, $21.50 fib, and the $20.59 fib. Upside trajectories range from the $36.55 fib up towards the $46.52 fib level.

 

 


Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.