Are you seeking a stock with a history of exceeding earnings estimates? If so, consider Pure Storage (PSTG), a data storage company that operates within the Zacks Computer- Storage Devices industry. In its last two reports, Pure Storage has consistently surpassed analysts’ expectations, demonstrating a strong track record of performance.
Over the past two quarters, the company has beaten earnings estimates by an average of 28.28%. In the most recent quarter, Pure Storage reported earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.22 per share by a significant 45.45%. Similarly, in the previous quarter, the company delivered a 11.11% surprise, reporting earnings of $0.50 per share versus the expected $0.45 per share. This consistent outperformance has led to positive changes in earnings estimates for Pure Storage.
The Zacks Earnings ESP (Expected Surprise Prediction) for PSTG is currently positive, which is a strong indicator of an upcoming earnings beat. This positive ESP, when combined with the company’s Zacks Rank of #3 (Hold), strengthens the likelihood of another earnings beat. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, taking into account the latest information from analysts. This suggests that analysts revising their estimates close to an earnings release have access to the most recent information, which may be more accurate than earlier predictions.
Pure Storage currently has an Earnings ESP of +2.63%, indicating that analysts have recently grown more bullish on the company’s earnings prospects. This positive Earnings ESP, combined with the stock’s Zacks Rank #3 (Hold), suggests that another earnings beat is likely on the horizon. The company’s next earnings report is expected to be released on August 28, 2024.
It’s important to remember that a negative Earnings ESP doesn’t guarantee an earnings miss, but it does reduce the predictive power of this metric. Many companies outperform the consensus EPS estimate, but this is not the only factor influencing stock gains. Some stocks may even remain stable despite missing the consensus estimate. Therefore, it’s crucial to review a company’s Earnings ESP ahead of its quarterly release to improve your chances of success.
