Why Splunk Shares Are Trading Higher Today

Splunk Inc SPLK is trading higher Thursday after the company reported better-than-expected financial results and issued guidance above estimates. 

Splunk said fourth-quarter revenue increased 21% year-over-year to $901 million, which beat the $777.28 million estimate. The company reported quarterly adjusted earnings of 66 cents per share. 

"We reached a significant milestone as we surpassed $3 billion in total ARR last year, with cloud revenue growing 70%," said Jason Child, CFO of Splunk. "The impact of our business transformation on our financials is normalizing, and we’re well positioned for strong growth in revenue and cash flow."

Splunk expects first-quarter revenue to be between $615 million and $635 million versus the $609.8 million estimate. Fiscal-year 2023 revenue is expected to be between $3.25 billion and $3.3 billion versus the $3.01 billion estimate. 

Splunk also named Gary Steele CEO, effective April 11.

Analyst Assessment:

• JPMorgan analyst Mark Murphy maintained Splunk with a Neutral rating and lowered the price target from $140 to $133.
• Oppenheimer analyst Ittai Kidron maintained Splunk with an Outperform rating and lowered the price target from $203 to $175.
• Barclays analyst Raimo Lenschow maintained Splunk with an Overweight rating and lowered the price target from $160 to $157.
• Deutsche Bank analyst Brad Zelnick maintained Splunk with a Hold rating and raised the price target from $140 to $145.

Splunk is a cloud-first software company that focuses on analyzing machine data.

See Also: Why ChargePoint Shares Are Rising Today

SPLK Price Action: Splunk has traded between $105.45 and $176.66 over a 52-week period. 

The stock was up 7.02% at $122.99 at time of publication.

Photo: courtesy of Splunk.