What Analyst Projections for Key Metrics Reveal About Pure Storage (PSTG) Q2 Earnings

Core Viewpoint - The upcoming earnings report for Pure Storage (PSTG) is anticipated to show a quarterly earnings per share (EPS) of $0.38, reflecting an 11.8% increase year-over-year, with revenues expected to reach $756.59 million, a 9.9% increase from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 4.9% in the last 30 days, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions to the stock, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts project 'Revenue- Product' to be $401.79 million, a 0.5% increase from the prior-year quarter [5]. - The consensus for 'Revenue- Subscription services' is $354.80 million, indicating a significant 22.8% increase year-over-year [5]. - The average forecast for 'Geographic Revenue- Rest of the world' is $216.47 million, suggesting a 17.2% year-over-year change [5]. Profit Estimates - Expected 'Non-GAAP Gross profit- Subscription services' is projected at $262.34 million, up from $215.21 million in the same quarter last year [6]. - The estimated 'Non-GAAP Gross profit- Product' is $288.77 million, compared to $285.93 million from the previous year [6]. Stock Performance - Shares of Pure Storage have increased by 5.7% over the past month, outperforming the Zacks S&P 500 composite, which rose by 1.5% [6]. - With a Zacks Rank of 3 (Hold), PSTG is expected to perform in line with the overall market in the near future [6].