The Chicago Entrepreneur

: Splunk stock sinks after forecasts fall short of estimates

Splunk Inc. SPLK shares fell as much as 7% after hours Wednesday, after barely budging in the regular session to close at $102.48, after its first-quarter and full-year outlook fell short of Wall Street estimates. The cloud-software company reported fourth-quarter net income of $269 million, or $1.44 a share, compared with a loss of $140.8 million, or 88 cents a share, in the year-ago period. Adjusted for stock-based compensation and other costs, earnings were $2.04 a share. Revenue rose to $1.25 billion from $901.1 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of $1.14 a share on revenue of $1.08 billion. Splunk expects first-quarter revenue of $710 million to $725 million, while analysts had forecast earnings of 3 cents a share on revenue of $807.2 million. For the full year, Splunk expects revenue of between $3.85 billion and $3.9 billion, compared with analysts’ expectation of $4.02 billion. The company also announced Brian Roberts, formerly of Lyft Inc., as its new chief financial officer.

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