How Splunk Dominated Q2 Earnings
Splunk shares soared Friday after it released its fiscal second-quarter earnings report late on Thursday.
When Splunk Inc. (NASDAQ: SPLK) released its fiscal second-quarter earnings report after the markets closed on Thursday, the company said that it had $0.08 in earnings per share (EPS) and $388.3 million in revenue. The consensus estimates had called for $0.05 in EPS on revenue of $352.4 million. The same period of last year reportedly had EPS of $0.11 and $280.2 million in revenue.
During the most recent quarter, software revenues made up $239.7 million of the total revenues, an increase of 43% from the same period last year.
The company added more than 550 new customers in the quarter, including Dartmouth College, Southwestern Energy, U.K. Ministry of Defence and the U.S. Department of Defense.
Looking ahead to the fiscal third quarter, the company expects to see revenues in the range of $430 million to $432 million with an operating margin of roughly 13%. Consensus estimates call for $0.34 in EPS and $427.7 million in revenue for the quarter.
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Doug Merritt, president and CEO of Splunk, commented:
The rapid digitization of every organization, coupled with Splunk’s increasing innovation, is driving our continued momentum. Every organization needs to monitor, analyze and investigate data to make faster decisions and take action, and I am pleased that Splunk is the platform of choice. I am looking forward to .conf18 where we’ll reveal the next generation of product innovations to help our customers succeed during this exciting time in their digital evolution.
Shares of Splunk were last seen up about 16.5% at $125.51, with a consensus analyst price target of $125.42 and a 52-week trading range of $62.39 to $126.43.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
