Splunk Earnings: Here’s Why Investors Don’t Like These Results

Splunk Inc (NASDAQ:SPLK) had a loss and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.36%.
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Splunk Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.06 in the quarter versus EPS of $-0.04 in the year-earlier quarter.

Revenue: Rose 53.8% to $57.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS loss of $0.06 per share. By that measure, the company missed the mean analyst estimate of $-0.06. It beat the average revenue estimate of $54.03 million.

Quoting Management: “We are off to a strong start in the first quarter and I’m pleased with our new customer acquisition and financial performance,” said Godfrey Sullivan, Chairman and CEO. “Years of investment and product innovation have resulted in recognition that Splunk is disrupting the enterprise software space. In the security market, Splunk was recognized as a leader in the 2013 Gartner Security Information and Event Management (SIEM) Magic Quadrant and SC Magazine named Splunk Enterprise Best SIEM solution in North America and Best Enterprise Security Solution for Europe. In IT operations management, Gartner recognized Splunk as one of the fastest growing vendors in the category. And Fast Company named Splunk one of the world’s most innovative companies and ranked Splunk as the number one innovator in big data. We will continue to invest heavily in our data platform, content and SaaS offerings to deliver customer success.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS decreased to $-0.06 in the quarter versus EPS of $0.03 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.01 and has not changed. For the current year, the average estimate is a loss of $0, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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