Pure Storage (PSTG) stock plunged 8.41% in the pre-market trading session on Thursday, despite the company reporting better-than-expected fourth-quarter earnings and revenue. The data storage company's disappointing guidance for the current quarter appears to be the primary reason for the significant sell-off.
In the fiscal fourth quarter, Pure Storage beat analyst estimates for both earnings per share and revenue. However, the company's guidance for the current quarter fell slightly short of Wall Street expectations, with projected revenue and non-GAAP operating income falling below analyst estimates.
While Pure Storage highlighted its ongoing transformation and surpassing $3 billion in total revenue for the first time, investors appeared to be disappointed by the company's outlook, leading to the sharp decline in the stock's price during the pre-market session.
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