Miller Value Partners, an investment management firm, published its “Miller Opportunity Equity” fourth quarter 2021 investor letter – a copy of which can be seen here. A quarterly net decline of 4.29% has been recorded by the fund for the fourth quarter of 2021, compared to the S&P 500 Index’s 28.71% gain for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Miller Opportunity Equity, in its Q4 2021 investor letter, mentioned Splunk Inc. (NASDAQ: SPLK) and discussed its stance on the firm. Splunk Inc. is a San Francisco, California-based software company with an $18.7 billion market capitalization. SPLK delivered a 1.81% return since the beginning of the year, while its 12-month returns are down by -30.79%. The stock closed at $117.82 per share on February 4, 2022.
Here is what Miller Opportunity Equity has to say about Splunk Inc. in its Q4 2021 investor letter:
“Splunk Inc. (SPLK) declined 20.3% following the announcement that CEO Doug Merritt is stepping down and will be replaced on an interim basis by Graham Smith, Chair of the Board of Directors and previously Executive VP of Finance at Salesforce. The company reported FY3Q total revenue of $664.8M vs $645.2M expected with operating margins coming in at -9% versus consensus at -16.3%. The company provided 4Q guidance which disappointed with total revenue expected to be between $740-790M below consensus of $825M with non-GAAP operating margins of -2% to -8% worse than consensus of 1.9% due to continued investment in customer satisfaction as they work to move their legacy customers to the cloud. For the full year the company expects revenue of $2.51-2.56M vs consensus of $2.544M with non-GAAP operating margins of -15% to -17% worse than expectations of -14.9% and operating cash flow of $100M vs consensus of $116M. Finally, the company also provided 2023 preliminary guidance of Cloud annual recurring revenue (ARR) of at least $2B versus consensus of $2B and Total ARR of $3.9B versus $4.06B expected.”
Our calculations show that Splunk Inc. (NASDAQ: SPLK) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SPLK was in 47 hedge fund portfolios at the end of the third quarter of 2021, compared to 47 funds in the previous quarter. Splunk Inc. (NASDAQ: SPLK) delivered a -29.05% return in the past 3 months.
In September 2021, we also shared another hedge fund’s views on SPLK in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
