Shares of Splunk (NASDAQ:SPLK) gained significantly in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2024. Earnings per share came in at $0.18, which beat analysts’ consensus estimate of -$0.14 per share.
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Sales increased by 11.6% year-over-year, with revenue hitting $752 million. This beat analysts’ expectations of $727.19 million. Splunk noted that its overall costs were down 1% against this time last year, which isn’t surprising considering it staged a staff reduction of 4% earlier this year. It also cut back on contract labor and reduced some of its real estate footprint.
Splunk also offered guidance for the next quarter. Splunk expects its revenue to come in between $880 million and $895 million. That handily beats analyst consensus calling for $868 million. Further, Splunk also adjusted its full-year revenue figures. Previously, it expected between $3.85 and $3.9 billion. Now, it expects $3.9 billion outright.
Overall, Wall Street has a consensus price target of $116 on Splunk stock, implying 19.97% upside potential, as indicated by the graphic above.
