Up 50% in the Last Year, Splunk Soars as Its Big Data Engine Keeps Rolling
Splunk (NASDAQ: SPLK) is rallying back toward its all-time high again after giving investors plenty to be happy with during the third quarter of 2019. It's been a wild ride as the big data firm has been spending heavily to maximize its potential, and a projected dip in free cash flow (money left over after operating and capital expenses are paid) sent the stock down earlier in the year. Now that Splunk's sporting a 28% return during the current calendar year, those worries seem to be in the rearview mirror as the company continues to solidify its position in the booming data analytics industry.
Revenues in the fiscal 2020 third quarter (three months ended Oct. 31, 2019) were up 30% year over year to $626 million, topping what Wall Street analysts were expecting as well as the company's own guidance for $600 million during the Q2 earnings release. Adjusted operating profit margin of 16.8% was also better than the 16% management had forecast before.
A single quarter doesn't tell the whole story, though. After growing its top line by 38% last year, the company is building on that success, as it is well on track to reach its goal of over $2 billion in total revenue during the 2020 fiscal year.
Source Fool.com
