Pure Storage’s stock tanks 14% after tech company calls for worse-than-expected current quarter, year

Shares of Pure Storage Inc.
PSTG,
+5.74%
dropped more than 14% in the extended session Wednesday after the tech company reported fiscal third-quarter earnings above Wall Street expectations but guidance for its current quarter and full 2024 disappointed. Pure Storage earned $70.4 million, or 21 cents a share, in the fiscal third quarter, swinging from a loss of $787,000, breakeven on a per-share basis, in the year-ago quarter. Revenue rose 13% to $762.8 million, the company said, including a 26% increase in subscription services revenue. FactSet consensus called for GAAP EPS of 11 cents a share on sales of $761 million. The company guided for fourth-quarter revenue of $784 million, and fiscal 2024 revenue of $2.82 billion. That compares with FactSet consensus of $919 million for the quarter and $2.96 billion for the year.