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A few days ago we were prepared to write another earnings season off until Wall Street recovered to appreciate solid numbers. Thanks to yesterday's reports, we're already back in the zone.

 

Admittedly, post-earnings performance across the BMR universe has been extremely mixed. For every Alteryx (AYX: $103, up 12% after earnings), Paycom (PAYC: $261, up 25%), Roku (ROKU: $156, up 11%) or Spotify (SPOT: $139, up 15%), we've absorbed a Ventas (VTR: $57, down 15%), Twitter (TWTR: $30, down 23%) or TPI Composites (TPIC: $16.30, down 25%). It happens even in the best quarters. As money flows in and out of the market, some stocks naturally recede to make room for the new wave of winners.

 

The goal is to make sure more stocks advance than recede, and that they climb far enough to make up for the downswings. We hit the first milestone weeks ago and now 60% of the BMR stocks that have reported this season are up on their numbers. As of last night, our recommendations are up an aggregate 1% for the season. We've won this one. All we need to do now is let the market's momentum take over to multiply that profit between now and the start of the 4Q19 confession season, when new numbers shuffle the deck.

 

The companies that took us over the top were Anaplan (PLAN: $53, up 11% this week) and Splunk (SPLK: $127, up 6% and then jumping to $134 overnight). Both did their job, defying those who said the global economy is slowing too fast to support their accelerated growth rates.

 

Anaplan is ramping up fast on the road to profitability. We got $89 million in revenue when management previously told us to expect about $86 million. That 43% top-line growth translated into a narrower loss than we saw coming ($0.08 per share). Guidance is right in line with our projections, so there's no negative surprise here and every reason to suspect that the company remains on course to break even in the foreseeable future.

 

 

For Splunk, $626 million in revenue was a full $22 million more than we anticipated and reflects 30% growth. That's the only number we needed to see, and management's confidence in their ability to report $780 million at the end of the current quarter is the icing on the cake. This is usually a strong season for the company but this one is shaping up better than usual. And on the bottom line, $0.58 per share in profit is a full 52% above last year's level. We would have been happy with just $0.54, so this is a beat all the way around. Great stuff.