Pure Storage Stock Is Plunging Thursday: What's Going On?

Pure Storage Inc PSTG shares are trading lower Thursday after the company reported weak top-line results and issued guidance below estimates.

What Happened: Pure Storage said third-quarter revenue increased 13% year-over-year to $762.8 million, which missed the consensus estimate of $763.362 million, according to Benzinga Pro. The company reported quarterly earnings of 50 cents per share, which beat analyst estimates of 40 cents per share.

Operating cash flow came in at $158.4 million and free cash flow totaled $113.4 million in the quarter. Pure Storage ended the quarter with $1.35 billion in cash, equivalents and marketable securities.

"Pure continues to see extraordinary growth in our Evergreen Storage-as-a-Service consumption services providing customers with a Cloud Operating Model for their multi-cloud infrastructure," said Charles Giancarlo, chairman and CEO of Pure Storage.

"And we have raised the bar for data storage management with strong SLAs that guarantee no change management downtime or disruption, and no future data migrations for hardware changes or replacements — all while simplifying data storage operations, optimizing cloud storage, and reducing costs."

Pure Storage expects fourth-quarter revenue of $782 million versus estimates of $919.42 million. Full-year 2024 revenue is expected to be approximately $2.82 billion versus estimates of $2.86 billion.

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PSTG Price Action: Pure Storage shares were down 17.5% at $31.29 at the time of writing, according to Benzinga Pro.

Photo: Pexels from Pixabay.