Pure Storage (NYSE:PSTG) Q4 Earnings: Leading The Hardware & Infrastructure Pack
Looking back on hardware & infrastructure stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Pure Storage (NYSE:PSTG) and its peers.
The Hardware & Infrastructure sector will be buoyed by demand related to AI adoption, cloud computing expansion, and the need for more efficient data storage and processing solutions. Companies with tech offerings such as servers, switches, and storage solutions are well-positioned in our new hybrid working and IT world. On the other hand, headwinds include ongoing supply chain disruptions, rising component costs, and intensifying competition from cloud-native and hyperscale providers reducing reliance on traditional hardware. Additionally, regulatory scrutiny over data sovereignty, cybersecurity standards, and environmental sustainability in hardware manufacturing could increase compliance costs.
The 10 hardware & infrastructure stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 20.5% since the latest earnings results.
Best Q4: Pure Storage (NYSE:PSTG)
Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE:PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.
Pure Storage reported revenues of $879.8 million, up 11.4% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ EPS estimates but billings in line with analysts’ estimates.
"Pure Storage delivered solid fourth quarter and full year results as we fundamentally transform data storage and management for enterprises and hyperscalers," said Pure Storage CEO and Chairman Charles Giancarlo.
Pure Storage Total Revenue
Pure Storage scored the highest full-year guidance raise of the whole group. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 15.5% since reporting and currently trades at $45.06.
Founded by Michael Dell in his University of Texas dorm room in 1984 with just $1,000, Dell Technologies (NYSE:DELL) provides hardware, software, and services that help organizations build their IT infrastructure, manage cloud environments, and enable digital transformation.
Dell reported revenues of $23.93 billion, up 7.2% year on year, falling short of analysts’ expectations by 2.5%. The business performed better than its peers, but it was unfortunately a mixed quarter with a solid beat of analysts’ operating income estimates.
Dell Total Revenue
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 15.5% since reporting. It currently trades at $91.15.
Pioneer of the luxury metal credit card that's in the wallets of affluent consumers worldwide, CompoSecure (NASDAQ:CMPO) designs and manufactures premium metal payment cards and secure authentication solutions for financial institutions and digital asset storage.
CompoSecure reported revenues of $100.9 million, flat year on year, falling short of analysts’ expectations by 1.6%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
As expected, the stock is down 15% since the results and currently trades at $10.21.
With roots dating back to 1859 and a presence in over 100 countries, Diebold Nixdorf (NYSE:DBD) provides automated self-service technology, software, and services that help banks and retailers digitize their customer transactions.
Diebold Nixdorf reported revenues of $988.9 million, down 4.6% year on year. This print met analysts’ expectations. Zooming out, it was a softer quarter as it logged a significant miss of analysts’ EPS estimates.
The stock is flat since reporting and currently trades at $43.61.
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE:IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
IonQ reported revenues of $11.71 million, up 91.8% year on year. This number beat analysts’ expectations by 15.9%. However, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates.
IonQ pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 19.7% since reporting and currently trades at $24.04.
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