Splunk Falls On Mixed Q4 Earnings, Lower Guidance

Splunk SPLK shares are trading lower after the company issued first-quarter and fiscal year 2021 sales guidance below estimates.

The company reported quarterly earnings of 96 cents per share, which met the analyst consensus estimate. This is a 3.23% increase over earnings of 93 cents per share from the same period last year.

The company reported quarterly sales of $791 million, which beat the analyst consensus estimate of $783.19 million by 1%. This is a 27.15% increase over sales of $622.085 million the same period last year.

Splunk sees first-quarter sales at $450 million versus the $526.7 million estimate and fiscal year 2021 sales $2.6 billion versus the $2.88 billion estimate.

"This was a transformational year for Splunk,” said Doug Merritt, CEO of Splunk. “We have transitioned our business model, our product strategy and introduced new and enhanced pricing models as part of our company-wide, cloud-first approach. These shifts have provided unprecedented value to our customers by bringing Data-to-Everything."

Splunk shares were trading down 14.68% at $132.59 in Wednesday's after-hours session. The stock has a 52-week high of $176.31 and a 52-week low of $107.16.