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Splunk (SPLK) to Report Q2 Earnings: What's in the Cards?
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Splunk is set to report second-quarter fiscal 2022 results on Aug 25.
For the quarter, the Zacks Consensus Estimate has remained steady at a loss of 69 cents per share over the past 30 days. The company had reported loss of 33 cents per share in the year-ago quarter.
For second-quarter fiscal 2022, Splunk expects revenues in the range of $550 million to $570 million. The consensus mark for revenues currently stands at $562.2 million, suggesting growth of 14.3% from the year-ago quarter’s reported figure.
Notably, the company’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters while missing the same in the other three, the average surprise being 875.1%.
Let’s see how things have shaped up for this announcement.
Solid demand for the company’s enterprise, security and cloud solutions is expected to have aided customer wins, thereby driving the top line in the fiscal second quarter. Splunk’s portfolio strength has not only helped it win new customers but has also expanded its existing customer base.
The company expects total annual recurring revenue (ARR) to be between $2.59 billion and $2.61 billion in the to-be-reported quarter. Cloud ARR is expected to be between $950 million and $960 million.
The company’s expanding portfolio of solutions have been driving customer growth. On Jun 22, Splunk announced the launch of a cloud-based security platform — Splunk Security Cloud. Splunk Security Cloud offers enterprise-grade advanced security analytics, automated security operations, and integrated threat intelligence.
Additionally, Splunk’s expanding partner base, comprising the likes of Amazon Web Services (AWS), Accenture (ACN - Free Report) , and Cisco (CSCO - Free Report) , has been a key catalyst. Integration of its products in partner solutions is expected to have enhanced the company’s exposure, particularly among enterprise customers.
Notably, cloud represented 56% of total software bookings in the fiscal first quarter, higher than 51% in the previous quarter and 44% in the year-ago quarter. Cloud services’ revenues surged 72.9% year over year to $194 million and accounted for 38.6% of revenues.
The momentum is expected to have continued in the to-be-reported quarter on the back of increased utilization of cloud-based services and solutions.
However, increasing cloud revenues in the product mix are expected to have kept margins under pressure in the to-be-reported quarter.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Splunk has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
A Stock to Consider
Here is a company you may want to consider, as our model shows it has the right combination of elements to post an earnings beat in its upcoming release:
Image: Bigstock
Splunk (SPLK) to Report Q2 Earnings: What's in the Cards?
Splunk is set to report second-quarter fiscal 2022 results on Aug 25.
For the quarter, the Zacks Consensus Estimate has remained steady at a loss of 69 cents per share over the past 30 days. The company had reported loss of 33 cents per share in the year-ago quarter.
For second-quarter fiscal 2022, Splunk expects revenues in the range of $550 million to $570 million. The consensus mark for revenues currently stands at $562.2 million, suggesting growth of 14.3% from the year-ago quarter’s reported figure.
Notably, the company’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters while missing the same in the other three, the average surprise being 875.1%.
Let’s see how things have shaped up for this announcement.
Splunk Inc. Price and EPS Surprise
Splunk Inc. price-eps-surprise | Splunk Inc. Quote
Factors to Consider
Solid demand for the company’s enterprise, security and cloud solutions is expected to have aided customer wins, thereby driving the top line in the fiscal second quarter. Splunk’s portfolio strength has not only helped it win new customers but has also expanded its existing customer base.
The company expects total annual recurring revenue (ARR) to be between $2.59 billion and $2.61 billion in the to-be-reported quarter. Cloud ARR is expected to be between $950 million and $960 million.
The company’s expanding portfolio of solutions have been driving customer growth. On Jun 22, Splunk announced the launch of a cloud-based security platform — Splunk Security Cloud. Splunk Security Cloud offers enterprise-grade advanced security analytics, automated security operations, and integrated threat intelligence.
Additionally, Splunk’s expanding partner base, comprising the likes of Amazon Web Services (AWS), Accenture (ACN - Free Report) , and Cisco (CSCO - Free Report) , has been a key catalyst. Integration of its products in partner solutions is expected to have enhanced the company’s exposure, particularly among enterprise customers.
Notably, cloud represented 56% of total software bookings in the fiscal first quarter, higher than 51% in the previous quarter and 44% in the year-ago quarter. Cloud services’ revenues surged 72.9% year over year to $194 million and accounted for 38.6% of revenues.
The momentum is expected to have continued in the to-be-reported quarter on the back of increased utilization of cloud-based services and solutions.
However, increasing cloud revenues in the product mix are expected to have kept margins under pressure in the to-be-reported quarter.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Splunk has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
A Stock to Consider
Here is a company you may want to consider, as our model shows it has the right combination of elements to post an earnings beat in its upcoming release:
American Eagle Outfitters, Inc. (AEO - Free Report) has an Earnings ESP of +1.44% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.