Splunk Shares Spike to New High Following Q3 Results

Shares of Splunk SPLK spiked to new high following third quarter results. Splunk reported outstanding results in the third quarter. Total revenues were $78.6 million, up 51 percent year-over-year, with an operating free cash flow of $13.3 million. License revenues were reported at $50.9 million, up 47 percent YoY. GAAP operating loss was $16.8 million or $0.16 per share. Non-GAAP operating income was $0.9 million or 1 percent of revenues. The software company signed more than 450 new customers, ending the quarter with more than 6,400 customers worldwide. Splunk announced the general availability and release of Splunk Enterprise 6, Splunk Cloud, Splunk Storm, Hunk: Splunk Analytics for Hadoop, Splunk App for Unix and Linus, and the Splunk App of Okta. The company acquired Inc. and announced Amazon Machine Images for Splunk Enterprise 6 and Hunk on the Amazon Web Services. The company also signed a reseller agreement with Hitachi Solutions to distribute Splunk Enterprise across Japan. Splunk4Good participated in the White House's Data to Knowledge to Action: Building New Partnerships, to create a new public interface to better enable citizens to explore federal regulatory data. Splunk4Good also announced a collaborative project with Ford Motor Company F, the Ford OpenXC Connected Car Dashboards to collect and analyze data for better insight into driving patterns and vehicle performance. Notable Analyst Rating and Price Target Changes:

• Goldman Sachs increased the price target from $69 to $72.
• Wedbush raised the PT from $69 to $74 and reiterated outperform.
• Bank of America Merrill Lynch increased the price target from $66 to $70.
• J.P. Morgan rated Splunk as Overweight with a $72 PT.
• FBN Securities maintained an Outperform rating and raised the PT from $65 to $75.
• Canacoord increased the price target from $68 to $72 and reiterated a Buy rating.
• Cantor Fitzgerald reiterated Buy and raised the PT from $70 to $77.
• Jefferies maintained a Hold rating and increased the price target from $57 to $64.

Shares of Splunk closed at $59.90 on Thursday and are currently trading at +20.62 percent.