==Splunk (SPLK) to be acquired by Cisco (CSCO) for $28 billion, or $157.00 per share

 

Splunk: Cisco (CSCO) to acquire Splunk for $157 per share in cash, representing approximately $28 billion in equity value

• Transaction Details: Under the terms of the agreement, Cisco intends to acquire Splunk for $157 per share in cash, representing approximately $28 billion in equity value. The transaction is expected to be cash flow positive and gross margin accretive in the first fiscal year post close, and non-GAAP EPS accretive in year two. Additionally, it will accelerate Cisco's revenue growth and gross margin expansion. The transaction will not impact Cisco's previously announced share buyback program or dividend program. The acquisition has been unanimously approved by the boards of directors of both Cisco and Splunk. It is expected to close by the end of the third quarter of calendar year 2024, subject to regulatory approval and other customary closing conditions including approval by Splunk shareholders.

===Splunk (SPLK) : $20 billion-plus takeover from Cisco (CSCO)

Cisco Systems Inc. (CSCO) has made a takeover offer worth more than $20 billion for software maker Splunk Inc.   Its most recent deal of size was its nearly $5 billion purchase of Acacia Communications Inc. in 2021.

Splunk is currently searching for a chief executive after Doug Merritt stepped down from the role in November after roughly six years following a series of disappointing earnings reports. The company named Chairman Graham Smith as interim CEO, a position he still holds.

Splunk, founded in 2003, makes software used by companies’ information-technology and security operations to monitor and analyze data.

Software has been a hot corner of the M&A market lately, with a number of companies in the sector being snapped up by private-equity firms or other industry players. In one of the latest examples, Citrix Systems Inc. agreed to be taken private by a pair of private-equity firms in an acquisition valued at $16.5 billion, including debt.

Splunk said in June that technology-focused private-equity firm Silver Lake was making a $1 billion investment in the company to help support the transformation of the business. Splunk has been shifting from a traditional software-licensing arrangement to a cloud-based subscription model. An increase in the shares on news of that investment had evaporated by the close of trading Friday.

There were $2.6 trillion of merger deals announced in the U.S. in 2021, up 76% from the prior year, according to Dealogic.

This week's biggest % winners & losers: Nov 30 - Dec 4, 20 (wk 49)

This week's biggest % gainers/losers The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top % gainers

• Healthcare: GTHX (18.51 +29.44%), PACB (19.82 +28.45%), CRSP (149.01 +22.59%)
• Materials: RYAM (8.32 +28%), KALU (99.65 +24.63%), TMST (6 +22.2%)
• Industrials: EAF (9.76 +23.95%), GOL (10.52 +21.2%)
• Consumer Discretionary: KSS (40.65 +21.34%)
• Information Technology: BB (8.46 +37.48%), COHU (38.26 +36.4%), CASA (6.71 +28.05%), UMC (8.91 +27.76%), ARLO (6.95 +27.06%), DDD (10.48 +22.09%)
• Energy: CPE (13.38 +28.53%), ALTM (49.92 +24.79%), CRC (26.88 +22.91%), QEP (2.17 +22.32%)

This week's top % losers

• Healthcare: ARRY (33.88 -28.08%), BGNE (222.01 -22.34%), IRTC (182 -22.18%)
• Industrials: GMS (27.26 -14.41%), RUN (57.41 -13.99%)
• Consumer Discretionary: TOUR (2.16 -32.29%), EXPR (1.18 -25.79%), NIO (42.84 -20.67%), DLTH (12.01 -19.5%), UXIN (1.31 -16.95%), MOGU (2.29 -16.42%), AAN (19.14 -14.17%)
• Information Technology: SPLK (161.21 -20.99%), APPN (154.12 -20.5%), JKS (61.32 -15.27%)
• Energy: CEO (96.4 -21%), BTU (1.3 -19.75%), CLNE (4.26 -15.31%)

Splunk (SPLK) reported earnings on Wed 2 Dec 2020 (a/h)

 

Splunk misses by $0.16, misses on revs; guides Q4 revs below consensus

Reports Q3 (Oct) loss of $0.07 per share, $0.16 worse than the S&P Capital IQ Consensus of $0.09; revenues fell 10.8% year/year to $558.57 mln vs the $613.83 mln S&P Capital IQ Consensus.

Cloud ARR was $630 million, up 71% year-over-year.

Total ARR was $2.07 billion, up 44% year-over-year.

Co issues downside guidance for Q4, sees Q4 revs of $650-$700 mln vs. $783.68 mln S&P Capital IQ Consensus. Non-GAAP operating margin is expected to be between negative 4% and positive 3%.

Splunk (SPLK) reported earnings on Thur 21 Nov 2019 (a/h)

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Splunk beats by $0.03, beats on revs; guides Q4 revs above consensus

Reports Q3 (Oct) earnings of $0.58 per share, $0.03 better than the S&P Capital IQ Consensus of $0.55; revenues rose 30.1% year/year to $626 mln vs the $605.2 mln S&P Capital IQ Consensus.

Software revenues were $454 million, up 40% yr/yr.

Operating cash flow was ($135) mln with free cash flow of ($162) mln.

Co issues upside guidance for Q4, sees Q4 revs of $780 mln vs. $767.71 mln S&P Capital IQ Consensus. Non-GAAP operating margin is expected to be approximately 23%. 

Earnings this week : Nov 18 - 22, 19 (wk 47)

Monday (Nov 18)

• Morning: CCMP LX MANU QD
• Afternoon: CRMT ASH BILI KRNT WWD ZTO

Tuesday (Nov 19)

• Morning: WUBA ARMK DAVA PPDF HD JKS KSS MMS MDT NJR TJX TDG
• Afternoon: ESE PAGS URBN

Wednesday (Nov 20)

• Morning: AVYA LOW PDD QIWI SR TGT
• Afternoon: CPRT CUB GTBIF JACK LB LZB NTES NUAN SQM SONO

Thursday (Nov 21)

• Morning: ASYS PLAN BZUN BERY BJ BRC BV AQUA HMLP M SDRL SFL
• Afternoon: BRBR ENTA GPS IIIV INTU MATW JWN OOMA POST PSTG ROST SCVL SPLK WSM

Friday (Nov 22)

• Morning: ATKR BKE FL FUTU HIBB SJM

Notable earnings reports:

• Manchester United (NYSE:MANU) on November 18; 
• Home Depot (HD), TJX Companies (NYSE:TJX) and Urban Outfitters (NASDAQ:URBN) on November 19; 
• L Brands (NYSE:LB), Lowe's (LOW), Jack in the Box (NASDAQ:JACK) and Target (TGT) on November 20; 
• Gap (NYSE:GPS), Macy's (NYSE:M), Splunk (NASDAQ:SPLK), Ross Stores (NASDAQ:ROST) and Nordstrom (NYSE:JWN) on November 21; 
• Foot Locker (NYSE:FL) and J.M. Smucker (NYSE:SJM) on November 22.

Splunk (SPLK) reported earnings on Wed 21 Aug 19 (a/h)

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Splunk beats by $0.18, beats on revs; guides Q3 revs above consensus; raises FY20 revs guidance above consensus

Reports Q2 (Jul) earnings of $0.30 per share, $0.18 better than the S&P Capital IQ Consensus of $0.12; revenues rose 33.0% year/year to $516.56 mln vs the $488.97 mln S&P Capital IQ Consensus.

Reports non-GAAP operating margin of 9.0%.

Co issues upside guidance for Q3, sees Q3 revs of $600 mln vs. $591.20 mln S&P Capital IQ Consensus. Non-GAAP operating margin is expected to be approximately 16%.

Co raises guidance for FY20, sees FY20 revs of $2.3 bln vs. prior outlook of $2.25 bln and vs. the $2.26 bln S&P Capital IQ Consensus. Non-GAAP operating margin is expected to be approximately 14% (unchanged from previous guidance).

Splunk to acquire SignalFx for total purchase price of approx. $1.05 bln in cash and stock

SignalFx is a SaaS leader in real-time monitoring and metrics for cloud infrastructure, microservices, and applications. The combination of Splunk and SignalFx will give IT and developers a data platform that allows them to monitor and observe data in real time, no matter the infrastructure or data volume.

Splunk will acquire SignalFx for a total purchase price of approx. $1.05 bln, to be paid approx. 60% in cash and 40% in Splunk common stock. The acquisition is expected to close in the second half of fiscal 2020.

Earnings this week : Aug 19 - 23, 19 (wk 34)

Monday (Aug 19)

• Morning: EL  QIWI  SINA  WB
• Afternoon: BIDU FN IQ

Tuesday (Aug 20)
Morning: CMCM HD KSS MDT MSG PINC PLAB PPDF SDRL SE SFL TJX

• Afternoon: AMCR CREE JKHY LZB NDSN SCSC TOL URBN

Wednesday (Aug 21)

• Morning: ADI BZUN KLXE LOW MSGN PLCE   PDD  RY TGT VIOT
• Afternoon: HTHT JWN KEYS LB PSTG QADA SNPS  SPLK WUBA ZAYO

Thursday (Aug 22)

• Morning: BJ CM DKS FLWS FLY GSX  HMLP HRL TTC
• Afternoon: ATGE CRM GPS HPQ INTU ROST VMW

Friday (Aug 23) 

• Morning: BKE  FL HIBB

Notable earnings reports:

• Baidu (NASDAQ:BIDU) and Estee Lauder (NYSE:EL) on August 19; 
• Home Depot (HD), TJX Companies (NYSE:TJX), Toll Brothers (NYSE:TOL), Urban Outfitters (NASDAQ:URBN) and Kohl's (NYSE:KSS) on August 20; 
• Splunk (NASDAQ:SPLK), Target (NYSE:TGT), Nordstrom (NYSE:JWN), Lowe's (LOW) and Analog Devices (NASDAQ:ADI) on August 21; 
• Salesforce.com (NYSE:CRM), VMWare (NYSE:VMW), HP Inc. (NYSE:HPQ), Gap (NYSE:GPS) and Dick's Sporting Goods (NYSE:DKS) on August 22; 
• Foot Locker (NYSE:FL) on August 23.

Splunk (SPLK) reported earnings on Thu 23 Aug 18 (a/h)

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** 2 days later  **

Splunk beats by $0.03, beats on revs; guides Q3 revs above consensus; guides FY19 revs above consensus 

• Reports Q2 (Jul) earnings of $0.08 per share, excluding non-recurring items, $0.03 better than the S&P Capital IQ Consensus of $0.05; revenues rose 38.6% year/year to $388.3 mln vs the $358.46 mln S&P Capital IQ Consensus.
  • Non-GAAP operating margin was 2.9% (Guidance was 2%).
• Co issues upside guidance for Q3, sees Q3 revs of $430-432 mln vs. $427.54 mln S&P Capital IQ Consensus.
  • Non-GAAP operating margin is expected to be approximately 13%.
• Co issues upside guidance for FY19, sees FY19 revs of ~$1.685 bln (Prior $1.645 bln) vs. $1.65 bln S&P Capital IQ Consensus.
  • Non-GAAP operating margin is expected to be approximately 11.5% (unchanged from prior guidance).

Earnings this week : Aug 20 - 24, 18 (wk 34)

Earnings confirmed to report this week:

Monday (August 20)

• Morning:  EL, IX, AU,  CMCM, HMI, SIEB, NESR, FENC
• Afternoon: NDSN LTM FANH FN TEDU ARL CMLS, EIGR  

Tuesday (Aug 21)

• Morning:  COTY  DAKT JILL KSS  MDT PINC SJM TJX TOL
• Afternoon:   BBL GSM KEYS JKHY PSTG SE MYGN LZB  RRGB URBN

Wednesday (Aug 22)

• Morning:  ADI BITA BNED FRO LOW MOMO PLAB RY SFL TGT UXIN 
• Afternoon:  BRY   BSBR HTHT LB SMRT SNPS SQM WSM QADA  ZAYO

Thursday (Aug 23)

• Morning:  BABA VMW INTU CM HPQ LX HRL  CTRN FLWS FLY HMLP  LANC  PLCE  SAFM SPWH TTC
• Afternoon:  ADSK GLOB GPS HPQ INTU OSIS ROST  SPLK VEEV VMW

Friday (Aug 24)

• Morning:  BKE FL HIBB UBNT

=Splunk (SPLK) reported earnings on Thur 16 Nov 17 (a/h)

Splunk beats by $0.03, beats on revs; guides JanQ revs above consensus; guides FY19 revs above consensus 

• Reports Q3 (Oct) earnings of $0.17 per share, excluding non-recurring items, $0.03 better thanthe Capital IQ Consensus of $0.14; revenues rose 34.3% year/year to $328.65 mln vs the $309.24 mln Capital IQ Consensus and vs prior guidance of $307-309 mln.
  • Non-GAAP operating margin was positive 9.8% vs 6.8% in the prior year period.
• Co issues upside guidance for Q4 (Jan), sees Q4 revs of $388-390 mln vs. $383.7 mln Capital IQ Consensus Estimate. Sees Q4 non-GAAP operating margin of 16%.
• Co issues upside guidance for FY19, sees FY19 revs of approx $1.55 bln vs. $1.53 bln Capital IQ Consensus Estimate. Sees FY19 non-GAAP operating margin of 10.5%.
• Co signed more than 450 new enterprise customers in OctQ. 

BMO Capital Marketsraises their SPLK tgt to $83 from $71; ,They are raising their FY19 FCF estimate to $320 million from $303 million. Given improved billings growth to 38% y/y in the October Q, compared to an average of 31% y/y in the two previous Q, they are raising their target multiple from approximately 30x EV/FY19 FCF to 33x-34x, which would represent a premium to our projected FY19 revenue growth estimate of about 1.3x vs. their previous assumption of 1.0x.

Needham:They believe yesterday's strong FY3Q18 report may finally serve to reinvigorate the shares. Reiterate BUY recommendation and $95 pricetarget. Overtime they believe cash flow from operations will increase linearly from 15% in FY18E to 24% in its steady state year of FY27E.

Oppenheimer:Broad-based Momentum Drives Yet Another Consensus-beating Quarter; Raises Guidance

Stifel: They note 3Q represented Splunk's strongest cloud quarter yet, and included the company closing its two largest cloud deals in history. Overall, they continue to be impressed with the progress Splunk is making on its transition to the cloud and the seemingly quick turnaround in Europe. They are raising their target price to $75. 

=Splunk (SPLK) reported earnings on Thur 24 August 2017 (a/h)

Splunk beats by $0.02, beats on revs; guides Q3 revs above consensus; guides FY18 revs above consensus

• Reports Q2 (Jul) earnings of $0.08 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.06; revenues rose 31.6% year/year to $279.96 mln vs the $268.72 mln Capital IQ Consensus.
• Co issues upside guidancefor Q3 (Oct), sees Q3 revs of $307-309 mln vs. $306.8 mln Capital IQ Consensus Estimate.
• Co issues upside guidance for FY18, sees FY18 revs of $1.210-1.215 bln vs. $1.20 bln Capital IQ Consensus Estimate.

=Splunk (SPLK) reported earnings on Thur 23 Feb 17 (a/h)

Splunk beats by $0.08, beats on revs; guides Q1 revs below consensus :

• Reports Q4 (Jan) earnings of $0.25 per share, $0.08 better than the Capital IQ Consensus of $0.17; revenues rose 39.3% year/year to $306.5 mln vs the $288.1 mln Capital IQ Consensus.
• License revenues were $190.5 million, up 35% year-over-year.
• Co issues downside guidance for Q1, sees Q1 revs of $231-233 mln vs. $242.32 mln Capital IQ Consensus Estimate.
  • Non-GAAP operating margin is expected to be between negative 2% and negative 4%
  • FY18 Outlook
    • Cloud revenues are expected to be approximately $85 million. 
    • Non-GAAP operating margin is expected to be approximately 8%.

Splunk (SPLK) reported earnings on Thur 8/25/16 (a/h)

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** charts after earnings **

 

Splunk beats by $0.02, beats on revs; guides Q3 revs in-line; guides FY17 revs above consensus  :

• Reports Q2 (Jul) earnings of $0.05 per share, $0.02 better than the Capital IQ Consensus of $0.03; revenues rose 43.5% year/year to $212.8 mln vs the $200.52 mln Capital IQ Consensus.
• Operating Margin 3.9%, Guidance 2-3%.
• License revenues were $115.7 million, up 32% year-over-year.
• Added more than 500 customers (Approx 450 in Q1)
• Co issues in-line guidance for Q3, sees Q3 revs of $228-230 mln vs. $228.75 mln Capital IQ Consensus Estimate.
  • Non-GAAP operating margin is expected to be between 5% and 6%
• Co issues upside guidance for FY17, sees FY17 revs of $910-914 mln vs. $897.70 mln Capital IQ Consensus Estimate.
  • Non-GAAP operating margin is expected to be approximately 5% (unchanged from prior guidance provided on May 26, 2016).

Splunk (SPLK) reported earnings Thur 26 May 16 (a/h)

** charts before earnings **

 

** charts after earnings **

 

Splunk reports EPS in-line, beats on revs; guides Q2 revs in-line; guides FY17 revs above consensus :

• Reports Q1 (Apr) loss of $0.02 per share, in-line with the Capital IQ Consensus of ($0.02); revenues rose 48.0% year/year to $186 mln vs the $174.18 mln Capital IQ Consensus.
  • Licensing Revenue was $101 mln, +41% y/y.
  • Co signed approx. 450 customers in the quarter.
• Co issues in-line guidance for Q2, sees Q2 revs of $198-200 mln vs. $198.39 mln Capital IQ Consensus Estimate.
  • Non-GAAP operating margin is expected to be between 2-3%.
• Co issues upside guidance for FY17, sees FY17 revs of $892-896 mln (Prior approx. $880 mln) vs. $882.29 mln Capital IQ Consensus Estimate.
  • Reaffirms Non-GAAP operating margin of approx. 5%.

Great trade : SPLK +11% (5/16)

• nr 15 and 59 (size: 1.15)  - 7 days ago (5/17/16)

Splunk (SPLK) reported earnings on Thur 25 Feb 2016 (a/h)

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** charts after earnings **

 

Beat on Q4 EPS of $0.11 ($0.08 Consensus); beat on revs; increases guidance for FY17 revs of $880 mln from $850 mln ($855 mln Consensus).

Splunk (SPLK) reported earnings Thu 19 Nov 2015 (after close)

** charts before earnings **

 

** 3 months later  **

Splunk beats by $0.03, beats on revs; guides Q4 revs above consensus; guides FY16 revs above consensus; guides FY17 revs above consensus:

• Reports Q3 (Oct) earnings of $0.05 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.02; revenues rose 50.3% year/year to $174.4 mln vs the $160.31 mln Capital IQ Consensus.
• Co issues upside guidance for Q4, sees Q4 revs of $200-202 mln vs. $198.27 mln Capital IQ Consensus Estimate. Non-GAAP operating margin is expected to be between 5% and 6%
• Co issues upside guidance for FY16, sees FY16 revs of approx $650 mln (Prior $628-632 mln) vs. $632.52 mln Capital IQ Consensus Estimate. Non-GAAP operating margin is expected to be approximately 3% (was previously between 2% and 3% per prior guidance provided on August 27, 2015).
• Co issues upside guidance for FY17, sees FY17 revs of approx $850 mln vs. $832.26 mln Capital IQ Consensus Estimate.