Splunk (SPLK) Stock: Gaining On Earnings Beat

Splunk Inc SPLK Stock News

Splunk Inc (NASDAQ: SPLK) is having a relatively strong start to the trading session this morning, and for good reason. The company reported its financial results for the third quarter, beating expectations in a big way. Of course, the news excited investors who are pushing the stock for the top. Today, we’ll talk about:

  • The earnings report;
  • what we’re seeing from SPLK stock as a result; and
  • what we’ll be watching for ahead.

SPLK Announces Q3 Financial Results

As mentioned above, Splunk is having an incredibly strong start to the trading session this morning after reporting its third quarter financial results. Here’s what we saw from the report:

  • Earnings – In terms of earnings, SPLK did overwhelmingly well. During the quarter, the company reported a loss of $55.7 million or $0.38 per share. However, once adjusted for stock option expense and non-recurring costs, earnings came to $0.38 per share, well above the $0.31 per share that was expected by analysts.
  • Revenue – Revenue also proved to be a hit. During the third quarter, analysts expected that the company would generate revenue in the amount of $432.3 million. However, the company actually reported revenue in the amount of $481 million.
  • Guidance – Finally, guidance also proved to be positive. In the current quarter, the company is expecting to generate revenue of about $560 million. That figure is also above analyst expectations, which come in at about $553.1 million.

It’s also worth noting that this earnings report marks the fourth straight year of the company beating its own guidance.

In other news, Dave Conte has decided that he will retire in March of 2020, after spending more than 8 years with the company. Nonetheless, Conte will remail the CFO of the company until a successor is named.

In a statement, Mr. Conte, CFO at SPLK, had the following to offer:

After so many years with the company, I’m proud of everything we’ve accomplished including transforming our business model to one that is primarily renewable on our way to delivering more than $2 billion in revenue… Splunk has never been better positioned for success, and I’m looking forward to continuing our execution over the next year.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Splunk, the news proved to be overwhelmingly positive. After all, it’s impressive to see guidance beat yet again for the fourth consecutive year. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:51), SPLK is trading at $106.20 per share after a gain of $4.57 per share or 4.50% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the iWatch Markets team will continue to keep a close eye on SPLK. In particular, we’re interested in following the company’s continued growth to see if it can keep the trend going. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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