Wall Street is expecting the San Francisco-based provider of software products to report a loss of 2 cents per share on revenue of $174.1 million.
During the same period last year, Splunk posted an adjusted loss of a penny per share on revenue of $125.7 million.
Drexel Hamilton maintained its "buy" rating and $80 price target on the stock before the results.
"Splunk's April quarter has traditionally been the revenue trough for the year and we expect this pattern to repeat itself in FY:17," the firm wrote in a note.
"Although the leading IT vendors struggled with weaker than expected demand in the enterprise market during 1Q:16, we believe Splunk's relatively small size, low market penetration and the strong secular trend around Big Data can keep the company heading in the right direction in FY:17 and beyond," Drexel Hamilton added.
For the first quarter, the firm expects the company to add 435 to 465 new enterprise customers.
Drexel Hamilton noted that although Splunk is well above its 52-week low made this February, the stock is still down 9% year-to-date and "we believe has an opportunity to turn positive given a continuation of the positive fundamental trends that we see ahead."
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SPLK