Splunk Inc SPLK shares are trading lower Thursday after multiple analysts cut price targets on the stock following the company's earnings results.
Splunk reported better-than-expected financial results Wednesday night, but lowered its total annual recurring revenue and cloud ARR expectations after some of the company's customers decided to opt for shorter contracts.
What Happened: Splunk said second-quarter revenue grew 32% year-over-year to $799 million, which beat average analyst estimates of $747.55 million, according to Benzinga Pro. The cloud software company reported quarterly adjusted earnings of 9 cents per share, which beat average analyst estimates for a loss of 35 cents per share.
Customers with total ARR greater than $1 million were up 24% year-over-year to 723 customers.
Splunk expects third-quarter revenue to be between $835 million and $855 million versus the estimate of $834.82 million. Full-year revenue is expected to be between $3.35 billion and $3.4 billion versus the estimate of $3.33 billion.
Total ARR is expected to be approximately $3.65 billion for the full year, which is down from previous expectations of $3.9 billion. Cloud ARR is expected to be approximately $1.8 billion, which is down from the previous forecast of $2 billion.
See Also: What Are Whales Doing With Splunk
Analyst Assessment: Several analysts adjusted price targets on the stock following the company's quarterly results.
- Credit Suisse analyst Phil Winslow maintained Splunk with an Outperform and lowered the price target from $180 to $150.
- RBC Capital analyst Matthew Hedberg maintained Splunk with an Outperform and lowered the price target from $143 to $139.
- Mizuho analyst Gregg Moskowitz maintained Splunk with a Neutral and lowered the price target from $120 to $115.
- Cowen & Co. analyst J. Derrick Wood maintained Splunk with a Market Perform and lowered the price target from $110 to $95.
- Deutsche Bank analyst Brad Zelnick maintained Splunk with a Hold and lowered the price target from $125 to $117.
- Morgan Stanley analyst Keith Weiss maintained Splunk with an Equal-Weight and raised the price target from $128 to $133.
SPLK Price Action: Splunk has a 52-week high of $150.79 and a 52-week low of $84.63.
The stock was down 9.78% at $99.57 at time of publication.
Photo: Douglas Muth from Flickr.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.