This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Splunk (SPLK) Slam Dunks in Third Quarter

NEW YORK (TheStreet) -- The third-quarter was a slam dunk for Splunk (SPLK - Get Report) after revenue came in 51% higher than a year ago. In response, investors piled into the stock, sending shares higher by 22.2% to $73.19.

The analytics software developer reported break-even net income, a penny over Thomson Reuters' expectations, and $78.6 million in revenue, $7.5 million higher than consensus.

The company managed to sign more than 450 new customers to its books, a 12.5% increase over customer additions in the second quarter, including corporate accounts with Tesla Motors (TSLA) and the Nasdaq, and government contracts with the U.S. Army and Air Force. By end of the third-quarter, Splunk had amassed a total 6,400 customers.

Splunk doesn't expect to slow growth over its fourth-quarter, with revenue forecasted to be between $88 million and $90 million, higher than the expected $86.1 million. Full-year revenue is slated to fall between $291 million to $293 million, higher than previous guidance of $275 million to $281 million.

Must Read: Novartis (NVS) Commits to $5 Billion Share Repurchase

Investment firm JMP Securities remained impressed with Splunk's "record customers" and "accelerating growth", reiterating its "market outperform" rating and raising its price target to $70 from $59.

"We continue to like Splunk as it has a rapidly growing customer base, is leveraged to the big data trend, has a freemium business model, a unique licensing model, and attacks a large and underpenetrated market," wrote JMP Securities analyst Greg McDowell.

Likewise, Cantor Fitzgerald kept a "buy" rating and upwardly revised its price target to $77 from $70. "Despite a weak IT spending environment, Splunk delivered meaningful revenue upside, raised its FY: 14 sales outlook and called out strength in the Federal vertical (despite the government shutdown)," wrote analyst Brian White. "In our view, the Splunk story continues to become more intriguing by the day with new users, expanded use cases, a broader product portfolio, and entry into non-traditional markets."

TheStreet Ratings team rates Splunk Inc as a Sell with a ratings score of D+. The team has this to say about their recommendation:

"We rate Splunk Inc (SPLK) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and feeble growth in its earnings per share."

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SPLK $31.32 0.00%
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs