Splunk beats expectations and raises forecast, but stock still slumps

Splunk Inc. announced better-than expected earnings Thursday afternoon and raised its forecast for full-year revenue, but shares still took a hit in late trading. The big-data software company said it lost $86.6 million, or 65 cents a share, on revenue of $212.8 million; after adjustments for stock-based compensation and other factors, Splunk claimed a profit of 5 cents a share. Analysts on average expected Splunk to report adjusted earnings of 3 cents a share and revenue of $200.5 million, according to FactSet. With the revenue beat, Splunk pushed its guidance for full-year sales higher, forecasting $910 to $914 million after previously stating sales would come in at $892 million to $896 million. Splunk shares still fell, however, possibly indicating hopes for a bigger earnings beat. The stock, which closed with a 1.4% gain at $65.10, fell more than 5% to less than $62 in immediate late trading after the report.

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