Splunk News: Why SPLK Stock Is Plunging Today

Splunk (NASDAQ:SPLK) news for Thursday from its third-quarter fiscal 2021 earnings report have SPLK stock taking a beating. This comes after reporting adjusted losses per share of 7 cents, which failed to reach Wall Street’s adjusted earnings per share estimate of 9 cents. Its revenue of $558.57 million also missed analysts’ estimates of $613 million.

Splunk (SPLK) logo on the company office in Santana Row.

Source: Michael Vi / Shutterstock.com

Here’s what else investors need to know about the most recent Splunk earnings news.

  • Adjusted per-share losses are a negative switch from its adjusted EPS of 58 cents in fiscal Q3 2020.
  • Revenue for the quarter comes in 11% lower than the $626.34 million reported during the same time last year.
  • Operating loss of $165.52 million is 248.5% wider year-over-year compared to $47.49 million.
  • The Splunk earnings news also has it bringing in a net loss of $201.53 million.
  • That’s 249.6% worse than its net loss of $57.64 million from the same period of the year prior.

Doug Merritt, president and CEO of Splunk, said the following in the earnings report.

“We crossed an important milestone during the quarter as continued demand for data-driven insights across our global customer-base drove our total ARR to over $2 billion. Today, there’s no better strategic partner to help organizations turn their data into action and accelerate their journey to the cloud than Splunk.”

The Splunk earnings report also includes guidance news for Q4 of fiscal 2021. This has the company expecting revenue to range from $650 million to $700 million. Unfortunately for SPLK stock, this will have it missing Wall Street’s estimate of $777.73 million for the quarter.

SPLK stock was down 21.6% as of Thursday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2020/12/splunk-news-hits-splk-stock-hard/.

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