Pure Storage Shares Plunge 18% On Poor Q1 Results

(RTTNews) - Pure Storage (PSTG), Tuesday reported a first-quarter results that missed Wall Street estimates on both top line and bottom line. The results disappointed investors sending the shares plunging 18% in the after-hours trade.

First-quarter loss widened to $100.3 million or $0.41 per share from $64.3 million or $0.29 per share last year.

On an adjusted basis, loss per share for the quarter widened to $0.11 per share from $0.07 per share last year. Analysts polled by Thomson Reuters estimated loss of $0.07 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter surged 28% to $326.7 million from $255.9 million. Analysts had a consensus revenue estimate of $333.16 million for the quarter.

Gross margin for the quarter rose to 66.2% from 65.0% last year.

"Q1 was a solid beginning of the year for Pure," said Tim Riitters, CFO, Pure Storage. "We continued to demonstrate strong growth, industry-leading margins, and innovation across our product portfolio."

Looking forward, the company expects revenues of $389 million to $401 million and $1.70 billion to $1.77 billion for the second quarter and full year 2020, respectively. Analysts currently estimate revenues of $396.95 million and $1.77 billion.

PSTG closed Tuesday's trading at $20.60, up $0.60 or 3.00%, on the Nasdaq. The stock further dropped $3.72 or 18.06% in the after-hours trade.