Splunk Expected To Report Slight EPS Growth On Considerable Revenue Incrase

Shares of Splunk Inc SPLK surged more than 1.3 percent on Wednesday, ahead of the announcement of the company’s first quarter (fiscal 2016) financial results, scheduled for after the market closes on Thursday.

According to Estimize, expectations point towards a slight year-over-year amelioration in earnings and revenue. In the first quarter last year, the company reported a net loss of ($0.04) per share on revenue of $85.9 million. For the current quarter, experts are modeling a net loss of ($0.03) per share on revenue of $118.33 million, while the crowd is projecting a net loss of ($0.01) per share on revenue of $121.57 million. Management, however, guided revenues -below estimates- of $117 million, up 36 percent year-over-year.

Although there is no clearly identifiable trend here, earnings and estimates from the past year suggest that the company could be in for a beat this quarter.

Related Link: Why Baird Thinks Splunk Will Outperform

It should also be noted that the current estimates imply a deceleration in growth when compared to previous quarters.

Can Splunk Really Outperform?

In a recent report, Oppenheimer's Shaul Eyal provided some insight on the cybersecurity industry. The analysts said he expects several companies in the space to report quarterly results that are, at least, in line with Wall Street's expectations, and highlighted FX as his only major preoccupation.

Related Link: Cybersecurity Investors: This Stock Could Win The Most From Rising Demand

The expert pointed out nine companies that he believes will report particularly strong results this quarter, and Splunk is amongst them. Eyal models a net loss of ($0.02) per share, above the Street, but under the crowd.