Splunk Inc (
is scheduled to release its second quarter 2014 results on Aug
29, 2013. Splunk posted a negative surprise of 33.33% in the
first quarter. The company has posted an average negative
surprise of 72.2% over the trailing four quarters. Let's see how
things are shaping up for the company this quarter.
Growth Factors this Past Quarter
Revenues surged 53.8% year over year to $57.2 million and were
above management's guided range of $52.0 to $54.0 million.
Revenues also beat the Zacks Consensus Estimate of $53.0 million.
Strong license sales and maintenance & services revenues led
to the better-than-expected year-over-year result. In the first
quarter, Splunk signed 132 orders, worth more than $100K,
compared with 73 in the year-ago quarter and 171 in the previous
The Zacks Consensus Estimate for the second quarter projects loss
of 11 cents per share while that for fiscal 2014 stands at a loss
of 36 cents per share. There have been no revisions in the second
quarter and full year 2014 estimates over the last 60 days.
The lack of any movement in estimates signals that the second
quarter might not be too different from the past quarters. This
is also indicated by that fact that the stock carries a Zacks
Rank #3 (Hold).
We caution against stocks with Zacks Ranks #4 and #5 (Sell rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Our model states that a stock needs to have both a positive
Earnings ESP (Read: Zacks Earnings ESP: A Better Method) and a
Zacks Rank of #1, #2 or #3 to beat earnings estimates. You could,
however, consider the following stocks that satisfy both
Inteliquent Inc (
has a Zacks Rank #1 (Strong Buy) and Earnings ESP of +66.67%.
ECHELON CORP (ELON): Free Stock Analysis
FUEL SYSTEM SOL (FSYS): Free Stock Analysis
INTELIQUENT INC (IQNT): Free Stock Analysis
SPLUNK INC (SPLK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Fuel Systems Solutions (
has a Zacks Rank #1 (Strong Buy) and Earnings ESP of +25.00%.
Echelon Corp. (
has a Zacks Rank #2 (Buy) and Earnings ESP of +11.11%.