These ‘off-cycle’ software makers could post upbeat results next week

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Although the end of May is in sight, there are still plenty of upcoming tech earnings reports to stoke investor interest ahead of Memorial Day weekend.

And according to Barclays analyst Raimo Lenschow said there are a handful of what he called “off-cycle” software companies expected to deliver quarterly results in the coming week that could prove significant “as a gauge of the whole [software] spending environment.”

According to Lenschow, among the companies that stand out in the next revenue cycle is cloud-based data platform developer Splunk (NASDAQ: SPLK). Analysts estimate Splunk (SPLK) will post a loss of 75 cents per share, on $629.7 million in revenue, when it reports fiscal first-quarter results on May 25. Lenschow said customer and business channel checks suggest Splunk (SPLK) will post “a solid but not stellar quarter with decent cloud dynamics.”

Lenschow, which has an overweight rating and a $135 per share price target on Splunk (SPLK) stock, said trading trends for the recently ended quarter “were only slightly down and should pick up in the next quarter”. These will also be Splunk’s (SPLK) first quarterly results since new chief executive Gary Steele took office on April 11.

intuitive (NASDAQ: INTU) also got high ratings from Lenschow, which has an overweight rating, and a price target of $480 per share on the company’s stock. Lenschow said there’s really no surprise as to why he thinks Intuit (INTU) is set for a strong trading update when it releases its fiscal third quarter results on May 24. .

“Our analysis of IRS and credit card data signals another strong tax season for TurboTax,” Lenschow said. “There are [also] a more than achievable setup in both Credit Karma and Small Business Services.”

Analysts estimate that Intuit (INTU) will report quarterly earnings of $7.58 per share, on revenue of $5.51 billion for its third quarter.

Lenschow said Workday (NASDAQ:WDAY) appears “primed to deliver strong first-quarter results,” with analysts currently estimating the company will earn 85 cents per share on revenue of $1.43 billion on May 26. Workday (WDAY) reports its outlook for the rest of the year to prove that it is working on the issues affecting the cloud-based business services industry.

“We believe Workday is set to deliver strong first quarter results,” Lenschow said. “[However]investors expect a strong quarter, but we are more cautious on [Workday’s] outlook given reliance on large, complex projects and potential for longer sales cycles. »

The next set of reports follows strong results last week from security software company Palo Alto Networks (PANW), which also gave an upbeat outlook for the rest of the year.