A 20% jump for Splunk Inc (NASDAQ:SPLK) as New Consumers bring in more Revenue for the company $SPLK

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By Erik Waters on September 1, 2014 Company

On surface, SolarCity Corp (NASDAQ:SCTY), Nordstrom, Inc (NYSE:JWN) and the U.S. Department of Health and Human Services (DHHS) share a very narrow or absolutely no common grounds. Their procedures and ventures contrast and are very unlike, or so it seems.

However, they have an imperative mutual interest – they all are scrutinizing Big Data. This common ground has brought them all to one platform where they have become the clients of the same company Splunk, Inc (NASDAQ:SPLK).However, DHHS and Nordstrom, Inc (NYSE:JWN) are not the only customers the company currently has.

After the close down on Thursday, the company announced its earnings results for the second quarter; it also said that its total clientele has gone up by 7%, that increased the revenue over 50%; this results in a 20% jump in the company’s stock during Friday’s trading.

Splunk, Inc (NASDAQ:SPLK) offers instruments and devices and provides analysis and assessments that assist companies to sort out and comprehend their data. It was reported on Thursday that, so far the company has recorded up to $101.5 million in revenue for their second quarter. It is a 52% improvement from last year’s second quarter. With this figure they have beaten a few predictions. Gross earnings, omitting exclusive items, came down to 1 cent per share, defeating the two-cent/share cost that was predicted. The customer list for the company was mainly responsible for these healthy results; Splunk, Inc (NASDAQ:SPLK) claimed it commenced and increased its services for special customers, not just for SolarCity Corp (NASDAQ:SCTY) and Nordstrom, Inc (NYSE:JWN), but this list also included Vermontstate, Australia’s National Revenue Office, Victoria, and France’s postal services system, La Poste.

Brent Till, a UBS analyst, said on Friday that Splunk, Inc (NASDAQ:SPLK) proved the expectations of bearish consensus wrong into the print of F2Q15; it did so by showing great growth in revenues, andpunter growth. The company enjoys 70% license bookings from its current customer base, which means that it has what it takes to retain its customers.

UBS changed their Splunk Inc (NASDAQ:SPLK) rating of buy and reduced the price target to a value of $55/share; it is a decrease by $1 only. Till believes the company to be an extraordinary discovery amongst public limited tech investments that is connected straight to movements around Big Data.

A Canaccord Genuity analyst, Richard Davis also changed Splunk Inc (NASDAQ:SPLK)’s buy rating and reduced the price target to $60/share from $70 previously. He also mentioned that Splunk, Inc (NASDAQ:SPLK) is very reasonably priced currently.

With such convincing and formidable earnings and outcomes, Splunk, Inc (NASDAQ:SPLK) is looking to increase its revenue guidance for full year within the range of $423 million and $428 million, which previously was between $402 and $410.

Friday was the company’s first trading day after releasing its great results; the stock kicked off the session at $3 higher than the previous rate and was successful to get a gain by 21%. However, it still has more to gain because compared to the first trading day in 2014 it’s down over 36%.