One big winner among tech stocks over the past five trading days was data analytics solutions provider Splunk (NASDAQ:SPLK). Posting a solid, estimates-trouncing quarter will do that to a stock.
Late in the week, Splunk released its Q3 of fiscal 2020 earnings, which topped analyst expectations not only for this quarter, but also for Q4. Revenue came in at $626 million, which was up by 30% on a year-over-year basis. Non-GAAP (adjusted) net profit was just over $91 million ($0.58 per share) for a sturdy 58% improvement.
...
Splunk's robust growth is an encouraging mix of both organic revenue improvement, and smart, complementary acquisitions. A shift toward recurring revenue also contributed. Investors like the recurring variety, as it makes future results a bit more predictable and tends to bring in more cash over the long term.
Splunk is well-positioned for more growth as enterprise clients require deeper and more useful means of sifting through increasingly higher piles of data. Although the company's nearly 18% rise in share price over the week might give some pause, the stock remains cheap given the company's still-strong potential. Investors should consider buying this stock.
https://www.fool.com/investing/2019/11/22/...he-market-this-week.aspx |
1
|
