Splunk Earnings: SPLK Stock Falls 4% on Weak Revenue Guidance

Splunk (NASDAQ:SPLK) earnings for the company’s fiscal fourth quarter of 2020 have SPLK stock falling hard after-hours Wednesday. This is despite its adjusted earnings per share (EPS) of 96 cents matching Wall Street’s estimate. Moving on to revenue, its $791.18 million beats out analysts’ estimates of $783.19 million.

Splunk Earnings: SPLK Stock Falls 4% on Weak Revenue Guidance
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The following are some additional highlights from the most recent Splunk earnings report.

  • Adjusted per-share earnings for the quarter are up 3.2% from 93 cents in fiscal Q4 2019.
  • Revenue comes in 27.2% higher than the $622.09 million from the same time last year.
  • Operating loss of -$7.77 million is a switch year-over-year from an operating income of $24.16 million.
  • The Splunk earnings report also has it bringing in a net loss of -$22.73 million.
  • That’s much worse than the company’s net income of $2.13 million from the same period of the year prior.

Jason Child, Chief Financial Officer of Splunk, said the following about the SPLK stock earnings report.

“We expect our cloud products could represent more than 60% of our total software business in the next few years and during this shift, ARR is the best metric to evaluate our growth. We grew ARR by 54% in fiscal year 2020 and are targeting a 40% ARR CAGR over the next three fiscal years.”

The Splunk earnings report also includes its guidance for the fiscal full year of 2021. This has it expecting revenue to come in at about $2.6 billion. Unfortunately for SPLK stock, Wall Street is looking for revenue of $2.88 billion during the year.

SPLK stock was down 4.47% after-hours Wednesday.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/03/splunk-earnings-guidance-hits-splk-stock/.

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