Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Splunk, Inc. Shares Soared, Then Fell Today

What: Shares of Splunk, (NASDAQ: SPLK  ) initially jumped more than 10% Friday, then gave up its gains to close down nearly 3% after the company turned in mixed fiscal fourth-quarter 2014 results.

So what: Quarterly revenue rose 53% year over year to $99.9 million, easily beating analysts' expectations for sales of $90.36 million.

However, adjusted net income only came in at $0.03 per share, compared to estimates which called for earnings of $0.05 per share.

In addition, Splunk expects current-quarter revenue to be between $78 million and $80 million, the midpoint of which sits slightly below expectations of $79.43 million. Current quarter adjusted operating margin should also be between negative 8% and 10%.

For the full fiscal year 2015, Splunk sees revenue of roughly $400 million with flat adjusted operating margin. Analysts, for their part, were modeling full fiscal year 2015 sales of $397.52 million, with adjusted net income of $0.13 per share.

Now what: Despite Splunk's top-line beat this quarter, I can't blame the market for taking a step back after fully digesting the rest of Splunk's report. And though price-to-earnings ratios offer little help for businesses on the cusp of profitability, it's worth noting that Splunk is currently being valued as a $10-billion company, or roughly 25 times this year's expected sales. That's generous, to say the least, so I'm not personally inclined to dive in today. For now, I'm perfectly happy watching Splunk from the sidelines.

The six stocks in this free report have awe-inspiring growth potential

If Splunk doesn't quite whet your appetite for growth, you're in luck! They said it couldn't be done. But David Gardner has proved them wrong, time, and time, and time again, with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently, one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2860080, ~/Articles/ArticleHandler.aspx, 9/5/2015 3:55:41 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated 6 hours ago Sponsored by:
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASD 4,683.92 -49.58 -1.05%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/4/2015 3:59 PM
SPLK $58.27 Down -1.65 -2.75%
Splunk CAPS Rating: ***