Earnings Results: Splunk stock spikes as strong forecast quiets concerns

by | May 24, 2023 | Stock Market

Splunk Inc. shares jumped more than 7% in after-hours trading Wednesday, after the software company quieted concerns about the tech-spending environment with a strong forecast. Splunk
reported results for its fiscal first quarter, typically the slowest period of the year for sales of the data-crunching software. Wall Street’s eyes were more focused on executives’ forecast, after they offered disappointing annual guidance in March.

Executives on Wednesday guided for second-quarter revenue of $880 million to $895 million, and tweaked their annual forecast to increase targets for adjusted operating margin and free cash flow. Analysts on average were expecting second-quarter sales of $868 million, according to FactSet. For the fiscal first quarter, Splunk reported a loss of $196.4 million, or $1.19 a share, on sales of $419.4 million, up from $674 million a year ago. After adjusting for stock compensation, restructuring costs and other effects, the company reported earnings of 18 cents a share, improving from an adjusted loss of 32 cents a share a year ago. Analysts on average expected and adjusted loss of 14 cents a share on sales of $723 million, according to FactSet. “Splunk delivered another solid quarter and once again delivered durable growth with increasing profitability and free cash flow,” Chief Executive Gary Steele said in a statement. Splunk has undergone seismic changes in the past couple of years, changing both its chief executive and chief financial officer am …

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