Rival enterprise data storage firms NetApp (NTAP) and Pure Storage (PSTG) reported quarterly earnings late Wednesday. Pure Storage stock tumbled despite results that beat expectations, while NetApp stock also dipped lower despite posting earnings and sales ahead of consensus.

Pure Storage said it earned an adjusted 44 cents per share on sales of $763.8 million for its fiscal second quarter, which ended Aug. 4. Analysts were expecting earnings of 37 cents per share, according to FactSet, and sales of $756 million. Pure Storage stock is down more than 14% at 51.21 in after-hours trading.

NetApp, meanwhile, reported adjusted earnings of $1.56 per share on sales of $1.54 billion for its fiscal first quarter ended July 26. Analysts were expecting earnings of 1.45 per share from sales of $1.53 billion. NetApp stock is down more than 3% at 127.43 in after-hours action.

Pure Storage: Up 70% Heading Into Report

While its sales and earnings beat expectations, Pure Storage lowered its annual guidance for subscription-as-a-service related total contact value to $500 million, from $600 million. However, the company maintained its overall revenue projection of $3.1 billion for its January-ending fiscal year.

Pure Storage Chief Executive Charles Giancarlo said on a conference call with analysts that the company is seeing a "lengthening" of negotiations for large subscription deals.

For the current quarter, Pure Storage projects sales of $815 million. Analysts had previously projected the company would post $811 million in sales for the period.

Mountain View, Calif.-based Pure Storage offers flash-based data storage hardware, as well as software tools to manage data storage. Shares had gained more than 70% this year heading into the report. Ahead of its report, Pure Storage stock has formed a consolidation pattern with a buy point of 70.41, according to MarketSurge.

In a news release, Giancarlo said the company's flash storage can save enterprises on energy costs.

"In a world where energy demands are soaring, the power savings of Pure Storage alone make the move from hard disks to Pure technology a smart choice for both hyperscaler and enterprise data centers," Giancarlo said.

Meanwhile, revenue from subscription services increased 25% year-over-year to $361.2 million. Pure Storage is transitioning more of its sales to subscription-based storage platforms. But that shift created some headwinds for its sales growth late last year.

Pure Storage is part of the IBD 50 flagship stock list. It also is included in the IBD Tech Leaders list.