Third-quarter revenue is forecast at $465.35 million, which would be up 3.0% sequentially and by 32.7% year over year. Okta is expected to post a loss per share of $0.24 for the quarter, 14 cents worse than the prior quarter’s loss and 17 cents worse than the year-ago loss. For the full 2023 fiscal year ending in January, analysts are looking for a loss per share of $0.73, compared with a year-ago loss of $0.46 per share, on sales of $1.82 billion, up 40.2%.
Okta is not expected to post a profit in 2023 or 2024. At the current share price, the multiple for estimated 2025 earnings of $0.29 per share is 171.8. The stock’s 52-week trading range is $44.12 to $244.18, and Okta does not pay a dividend. Total shareholder return for the past year is negative 77.6%.
Pure Storage
Shares of storage technology firm Pure Storage Inc. (NYSE: PSTG) have dropped about 8% over the past 12 months. The company is poised to post a GAAP earnings per share (EPS) profit in the current fiscal year, a first for the firm. Free cash flow for the past 12 months totals $540 million, and the company has repaid some $250 million in debt during the same period. Pure Storage has beaten the adjusted EPS consensus estimate in the past 13 consecutive quarters.
Of 20 brokerages covering the firm, 16 have a Buy or Strong Buy rating and the other four rate the shares at Hold. At a share price of around $29.50, the potential upside based on a median price target of $39.00 is 32.2%. At the high price target of $47.00, the upside potential is 59.3%.
Pure Storage is expected to report third-quarter 2023 revenue of $672.08 million, up 3.9% sequentially, and 19.4% higher year over year. The adjusted EPS estimate of $0.25 would be down 20.3% sequentially but up 13.6% year over year. For the full fiscal year ending in January, estimates call for EPS of $1.17, up 76.2%, and sales of $2.75 billion, up 26.2%.
The stock trades at 25.2 times expected 2023 EPS, 22.5 times estimated 2024 earnings of $1.31 and 19.6 times estimated 2025 earnings of $1.51 per share The stock’s 52-week range is $21.89 to $36.71, and Pure Storage does not pay a dividend. Total shareholder return for the past year is negative 7.9%.
Salesforce
Shares of enterprise software maker Salesforce Inc. (NYSE: CRM) have struggled over the past 12 months. The 52-week high was set one year ago, and shares currently trade nearly 50% below that level. The Dow component lowered guidance when it reported second-quarter results in August, it fired hundreds of employees earlier this month on its way to a reported total of around 2,500, and activist investor Starboard Value has acquired a so-far undisclosed position in Salesforce. What the company has to say about what comes next is almost certain to be more compelling than its quarterly numbers.
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