JMP Securities analyst Greg McDowell said Splunk reported "strong" Q1 results, but he attributes the after-hours pullback to Q2 operating margin guidance that was below consensus and confusion around billings under the ASC 606 accounting standard. McDowell, who said the company had a very strong cash flow quarter and thinks there could be considerable upside to Splunk's operating cash flow guidance for the year, raised his FY19 and FY20 non-GAAP EPS estimates following the report and increased his price target on Outperform-rated Splunk shares to $120.