Splunk profit: The SPLK share falls by 4% on weak revenue guidance

<p>Splunk (NASDAQ: SPLK) earnings for the company’s fiscal fourth quarter 2020, SPLK shares have fallen sharply after Wednesday. This is despite the fact that the adjusted earnings per share (EPS) of 96 cents corresponds to Wall Street‘s estimate. In the transition to revenue, its $ 791.18 million beats analysts’ estimates of $ 783.19 million.

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The following are some additional highlights from the latest Splunk performance report.

Adjusted earnings per share for the quarter increased by 3.2% from 93 cents during the fourth quarter of 2019. Revenue was 27.2% higher than USD 622.09 million from the same period last year. Operating profit of – $ 7.77 million is a change compared to the previous year from an operating profit of $ 24.16 million. The Splunk earnings report also has a net loss of – $ 22.73 million. This is much worse than the company’s net profit of $ 2.13 million from the same period last year.

Jason Child, CFO of Splunk, said the following about SPLK’s report on share income.

“We expect our cloud products to represent more than 60% of our total software business in the next few years, and during this shift, ARR is the best measure for evaluating our growth. We increased ARR by 54% during the financial year 2020 and aim for a 40% ARR CAGR during the next three financial years. ”

The Splunk results report includes its guidelines for the full fiscal year 2021. This expects revenue to be approximately $ 2.6 billion. Unfortunately for SPLK shares, Wall Street is looking for revenue of $ 2.88 billion during the year.

The SPLK share fell 4.47% after Wednesday.

At the time of writing, William White had no position in any of the above securities.

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

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