Shares of Pure Storage Inc. fell more than 5% in after-hours trading Wednesday after the data-storage company topped profit expectations for its most recent quarter but forecast slower revenue growth for the current year than analysts were modeling.
The company reported fiscal fourth-quarter net income of $74.5 million, or 22 cents a share, compared with net income of $14.9 million, or 5 cents a share, in the year-earlier period.
On an adjusted basis, Pure Storage PSTG, +0.88% earned 53 cents a share, compared with 36 cents a share in the year-earlier period. Analysts tracked by FactSet were modeling 39 cents in adjusted earnings per share.
Pure Storage’s revenue rose to $810.2 million from $708.6 million a year before, whereas analysts were expecting $811.6 million.
Subscription and services revenue came in at $265.1 million, up 23% from a year before. Product revenue amounted to $545.1 million, up from $492.6 million a year before. The FactSet consensus was for $265.4 million in subscription revenue and $547.3 million in product revenue.
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“We are confident that we will navigate the current macro backdrop, while focusing on our commitment to deliver long-term, profitable growth,” Chief Financial Officer Kevan Krysler said in a release.
For fiscal 2024, Pure Storage’s management expects mid-single-digit to high-single-digit growth in revenue, along with a 15% adjusted operating margin. The FactSet consensus called for $3.125 billion in fiscal 2024 revenue, which is more than 13% above the $2.753 billion annual total that Pure Storage logged in fiscal 2023.
The company noted in its release that the board of directors has authorized incremental stock buybacks of up to an additional $250 million under Pure Storage’s share-repurchase program.
The company bought back $67.5 million in stock during the fourth quarter.
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