Splunk stock soared Thursday as the data analytics company reported third-quarter results that soared past estimates on earnings and revenue. SPLK stock also blew past its 50-day moving average.
After the market close Wednesday, Splunk reported adjusted earnings of 83 cents a share, vs. estimates of 26 cents. Revenue of $930 million, up 40% from the year-ago period, topped estimates of $847 million.
SPLK stock rocketed 17.8% higher to close at 91.49 on the stock market today.
SPLK Stock: Concerns About Cloud Migration
One concern among analysts, however, pertained to Splunk's ongoing transition to the cloud, which remains under pressure.
"The company is still experiencing macro-related headwinds impacting cloud migrations/expansions," Oppenheimer analyst Attai Kidron said in a note to clients. "While expecting uncertainty around cloud to persist, we come away pleased by the strong profitability and stable growth."
For the year, Splunk expects revenue between $1.055 billion and $1.085 billion. The midpoint of $1.07 billion is slightly above estimates of $1.067 billion.
Using data analytics, Splunk helps businesses achieve valuable insights in many areas. This includes in-depth customer research, product development, cost management and competitive analysis.
"We delivered another solid quarter, with total revenues up 40% year over year," said Chief Executive Gary Steele, in a statement with the Splunk earnings release.
"We remain focused on balancing long-term, durable growth with profitability," continued Steele. "In addition to our strong top-line results, we also made good progress on our expense reduction during the quarter."
SPLK stock is down 23% this year.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
