Home / Market News / Splunk stock rises more than 6% after earnings beat

Splunk stock rises more than 6% after earnings beat

Splunk Inc. stock rose more than 6% in the extended session Thursday, after the software company topped Wall Street expectations for earnings and sales. The software company reported a fiscal third-quarter net loss of $57.6 million, which amounts to 38 cents a share, versus losses of $55.7 million, or 38 cents a share in the year-ago period. Revenue rose to $626.3 million from $481 million a year ago. Adjusted for stock-based compensation, among other items, earnings amounted to 58 cents a share. Analysts surveyed by FactSet expected adjusted earnings of 54 cents a share on sales of $604.6 million. “With the shift to a renewable model largely complete, momentum in our term license and cloud offerings drove 53% growth in total [annual recurring revenue] during the quarter,” Chief Financial Officer Jason Child said in a statement. For the fiscal fourth quarter, analysts expect earnings of $1.03 a share and sales of $770 million. Splunk said it predicts fiscal fourth-quarter revenue of $780 million. Splunk stock has gained 21% this year, as the S&P 500 index rose 24%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Read Full Story