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Investors May Have Grown Numb Of Splunk's Earnings Outperformance

Splunk Inc. NASDAQ:SPLK - Investors May Have Grown Numb Of Splunk's Earnings Outperformance

Splunk Inc SPLK 1.35% released its Q2 results after market close on Thursday. Earnings per share came in above Wall Street consensus expectations.

Splunk reported EPS of $0.05 and revenues of $212.8 million. Analyst consensus had an EPS estimate of $0.03 and revenues of $200.5 million.

Splunk saw Q3 revenues at $228-$230 million vs. estimates of $228.9 million. Splunk management raised FY17 revenue estimates from $892-896 million to $910-914 million an operating margin of 5 percent.

Beating Estimates is Normal

Splunk has beaten consensus revenue estimates in all of the last 17 quarters, exceeding EPS estimates 15 out of the last 17 quarters. Perhaps investors have grown numb to Splunk's outperformance of earnings estimates, and expected a larger surprise.

"We had a solid Q2 and our success continues to come from a combination of our existing customers expanding across multiple use cases and from adding more than 500 new customers," said Doug Merritt, President and CEO.

At time of writing, Splunk traded at $61.43 in Thursday's after-hours session, down 5.6 percent.

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