Tue. Nov 12th, 2019

Pure Storage stock plunges after cutting guidance again, CFO to depart

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Pure Storage Inc.

PSTG, +1.46%

shares dropped hard after reducing its annual forecast in an earnings report for the second consecutive quarter Wednesday, and the company also announced the departure of its chief financial officer. The flash-storage company reported a second-quarter loss of $66 million, or 26 cents a share, on sales of $396.3 million, up from $308.9 million a year ago. After adjusting to strip out stock-based compensation and other factors, the company claimed earnings of a penny a share, equal to the same period the prior year. Analysts on average expected Pure Storage to report adjusted losses of 4 cents a share on sales of $393 million, according to FactSet. While beating estimates for the second quarter, Pure Storage reduced its guidance, as it did three months ago, and now says it will record revenue of $1.645 billion to $1.715 billion, down from the guidance of $1.7 billion to $1.77 billion provided in May. The company also disclosed the departure of CFO Tim Ritters, who has served in that function for five years and will leave in the fall. Shares dropped more than 10% in after-hours trading Wednesday, after declining 13.7% so far in 2019 as the S&P 500 index

SPX, +0.82%

has gained 15.7%.

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