Pure Storage (PSTG) last night reported impressive financial results for the quarter ending October 2024, with fiscal third-quarter revenue reaching $831.07 million, an 8.9% increase from the previous year, and surpassing analyst expectations. The company also delivered earnings per share (EPS) of $0.50, exceeding the consensus estimate of $0.43, reflecting strong operational efficiency.
A notable highlight was the 21.6% growth in the subscription services segment, underscoring a successful pivot towards recurring revenue streams. Management also provided optimistic guidance for fiscal Q4, projecting sales of $867 million, exceeding previous forecasts.
Plus, the AI data center specialist said it secured “a transformational design win for our DirectFlash technology in a top-four hyperscaler," which has stoked investors’ enthusiasm even further.
Following the earnings report, Pure Storage stock is up 21% this afternoon, on pace for its biggest daily gain since February. The shares are now up nearly 83% on a year-to-date basis, but still trades about 7% below June’s peak levels.
Analysts have responded positively, including a notable upgrade to “Overweight” from “Neutral” and a price-target increase from $56 to $76 per share at Piper Sandler. Wells Fargo already rates PSTG at “Overweight,” but raised its price target to $80 from $75.
Options traders are favoring calls on PSTG today, suggesting that analysts aren’t the only group anticipating more upside out of the AI data center stock. Volume is outpacing open interest today at the monthly December 65, 70, and 75 strike calls, suggesting that new positions are being opened.
More broadly, today’s options volume on PSTG has surged to 32,472 contracts at last check, compared to the stock’s average daily options volume of fewer than 5,000 over the last month.
This article was generated with the support of AI and reviewed by an editor. On the date of publication, the editor did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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