NEW YORK (TheStreet) -- Shares of Splunk (SPLK) - Get Report are falling by 3.97% to $52.75 in pre-market trading Friday, after the San Francisco-based software provider reported a 2017 fiscal first quarter net loss that was in line with analysts' expectations. Revenue, however, was better-than-expected.
After yesterday's market close, Splunk reported an adjusted loss of 2 cents per share for the first quarter, meeting Wall Street estimates. The company's revenue rose by 48% year-over-year to $186 million, higher than analysts' expectations for revenue of $174.1 million.
Following the company's first quarter results, Barclays raised its price target to $51 from $45 and maintained its "equal weight" rating on the stock.
"We think that the biggest knock against the quarter was the lack of leverage. Revenue beat consensus by $12 million, but non-GAAP operating income was essentially in line, as expenses came in much higher," Barclays analysts said in an investor note this morning.
In addition, BMO Capital Markets increased its price target to $58 from $55 and reiterated its "outperform" rating" and Pacific Crest Securities raised its price target to $70 from $67 and maintained its "overweight" rating.
Separately, TheStreet Ratings rated Splunk as a "sell" with a score of D.
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. TheStreet Ratings has this to say about the recommendation:
This is driven by some concerns, which TheStreet Ratings 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 that are covered.
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.
You can view the full analysis from the report here: SPLK