NEW YORK (TheStreet) -- Shares of Splunk (SPLK) - Get Report were edging lower in midday trading on Wednesday ahead of the company's 2017 fiscal second quarter results, due out after tomorrow's closing bell.
Analysts are expecting earnings to be flat year-over-year, but revenue to increase compared to last year.
Wall Street is estimating that the San Francisco-based software solutions provider will report earnings of 3 cents per share on revenue of $200.5 million.
During the same period a year ago, Splunk said it had adjusted earnings of 3 cents per share on revenue of $148.3 million.
Barclays maintained an "equal weight" rating and $51 price target on shares earlier today. The firm sees "significant" room for Splunk to beat expectations when it posts second-quarter results.
Additionally, revenue estimates are "conservative" as the company has never had a quarter of growth below 46%, Barclays noted. Consensus expectations translate to growth of 35% year-over-year.
"Investors have been somewhat disappointed in recent quarters by the lack of outperformance on operating income, despite the revenue beats, and we think that to see meaningful stock strength, both metrics would need to come ahead," the firm wrote in an analyst note.
"We believe that investors are really starting to appreciate the success Splunk has had in the shift to a more ratable business model, away from the traditional perpetual license model," Barclays added.
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