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Salesforce and Splunk Soar; Krispy Kreme and OmniVision Tank

Dan Berman
Hot Stock Minute
Salesforce and Splunk Soar; Krispy Kreme and OmniVision Tank

Cloud-computing company Salesforce.com (CRM) is going sky-high on its quarterly report, rising 8%. Earnings came in at 9-cents a share versus expectations of 7-cents. Revenue also beat by almost $20-million at $957.1-million. Salesforce has been expanding from its core business of customer-management software into marketing tools. That included the recent acquisition of ExactTarget for $2.5-billion. Prior to this morning, company shares were up just 2% in 2013, although they've been up 22% over the past year.

Krispy Kreme (KKD) has gone stale since we previewed their earnings yesterday. The stock has been down more than 13%. Here's why: earnings that came in 2-cents short at 14-cents a share excluding items. Revenue was also below expectations at $112.7-million versus $114.91-million. Sales at stores open at least a year rose 10% in the quarter, and the chain reaffirmed its full-year earnings forecast. But growth appears to be slowing.

Splunk (SPLK) has been up almost 10% in early trading. The big data software firm revealed a loss for the quarter after yesterday's close, but it was less than expected at a penny a share. Analysts had been looking for losses of 3-cents. Sales also beat expectations at $66.9-million versus estimates of $63-million. Prior to gains from the report, shares were up 67% year-to-date. When you include them, the stock is testing its 52-week high, which it set at the beginning of the month.

OmniVision Technology (OVTI) which has been moving nearly 10% lower despite a solid earnings beat. In case you're not familiar with this company, Omnivision makes image sensors used in everything from cell phones and webcams to cars and medical imaging equipment. Now, look at the numbers, released after yesterdays close: earnings of 55-cents a share, 12-cents better than estimates. The problem was the topline where sales of $373.7-million missed the mark by about $3-million due to increased competition in the phone space. Prior to the fall we're seeing now, this stock had been up 24% year-to-date.