Needham & Company reiterates Hold on Splunk (SPLK) Following 3Q Report
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Needham & Company reiterated a Hold rating on Splunk (NASDAQ: SPLK) following the company's 3Q earnings report. $277m billings/$245m revenue and $0.12 EPS were all above consensus $273m bill/$230m revs and $0.08 EPS. FY17 guidance was raised from $910-914m to $930-932m revenue, above $915m consensus.
Analyst Scott Zeller commented, "SPLK results were a solid quarter in an environment that has challenged fast-growing sectors such as Security and Big Data; both have felt the chill of recent decelerated spending. SPLK delivered its (at least) 5th consecutive beat and raise quarter, and there were several high points, including acceleration of license and 40% y/y growth in the number of 7-figure deals. Cloud is increasingly important, with mgmt stating it has tripled y/y in the OctQ, though it is still a $100m annual run rate business. While we see SPLK performing strongly, we note decelerating billings y/y. Shares in aftermarket traded up slightly near $60.50, which is 6.2x EV/ FY18 revenue and 25x EV/FY18 FCF, which we believe is near fair value. We anticipate shares remaining range-bound."
Shares of Splunk closed at $57.38 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesNeedham & Company, Earnings
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