Pure Storage Q3 misses, Splunk beats

Pure Storage missed revenue estimates for Q3 and issued a weak outlook, while Spunk delivered strong results and upped its guidance.

Pure Storage missed revenue estimates for its fiscal third quarter and issued a weak outlook, marking continued turbulence for enterprise storage providers. The company posted a net loss of $30 million, or 12 cents a share. The company's non-GAAP earnings came to 13 cents per share on revenue of $428.4 million, up 15% year-over-year.

Wall Street was expecting earnings of 9 cents a share with revenue of $440.07 million. Shares of Pure Storage were down over 20% in after market trading.

Broken out, Pure Storage said product revenue was $323.3 million, and support and subscription revenue was $105 million. 

As for guidance, Pure Storage expects fourth quarter revenue to range from $484 million to $496 million. Wall Street is expecting Q4 revenue of $511 million. 

Splunk also reported earnings after the bell on Wednesday. The machine data software provider reported a third quarter net loss of $57.6 million, or 38 cents per share. Splunk's non-GAAP earnings came to 58 cents per share on revenue of $626 million, up 30% from the same time last year.

Wall Street was expecting earnings of 54 cents per share on revenue of $604.12 million. Shares of Splunk were up more than 6% after hours.

Elsewhere on the balance sheet, Splunk said software revenues were $454 million, up 40% year-over-year. The company also signed  440 new enterprise customers in Q3.

In terms of outlook, analysts are looking for earnings of $1.03 a share on revenue of $768.42 million. Splunk responded above the target, calling for Q4 revenue of $780 million. Splunk also upped its guidance for the fiscal year to about $2.35 billion.