Salesforce earnings top estimates, but forecast disappoints – MarketWatch

thumbnail

Salesforce.com Inc. earnings topped Wall Street estimates in a Tuesday report, but the cloud-software company’s outlook came in shy of consensus views.

The customer-relationship-management software company reported a fiscal third-quarter loss of $109 million, or 12 cents a share, compared with net income of $105 million, or 13 cents a share, in the year-ago period. Adjusted earnings were 75 cents a share. Revenue rose to $4.51 billion from $3.39 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 67 cents a share on revenue of $4.45 billion.

For the fourth quarter, Salesforce expects adjusted earnings of 54 cents to 55 cents a share on revenue of $4.74 billion to $4.75 billion, while analysts had forecast earnings of 61 cents a share on revenue of $4.74 billion.

“We had strong growth across our clouds and regions in the quarter as more companies turn to Salesforce as a trusted advisor in their digital transformations,” Keith Block, Salesforce co-chief executive, said in a statement.

For the year, Salesforce sees adjusted earnings of $2.89 to $2.90 a share on revenue of $16.99 billion to $17 billion. Analysts expect $2.86 a share on revenue of $16.92 billion.

The company expects fiscal first-quarter revenue of $4.8 billion to $4.84 billion and revenue of $20.8 billion to $20.9 billion for fiscal 2021. Analysts estimate $4.85 billion for the fiscal first quarter, and $20.95 billion for fiscal 2021.

Salesforce

CRM, +0.35%

 shares slipped 1.6% after hours, following a 0.4% rise in the regular session to close at $161.65.

At Tuesday’s close, Salesforce shares have risen 9% since their last earnings report, compared with a 5.8% gain for the S&P 500 index

SPX, -0.66%

 , a 6.6% rise on the Nasdaq Composite Index

COMP, -0.55%

 , and a 3.9% gain on the First Trust Cloud Computing ETF

SKYY, +0.05%

over that period. 

Of the 36 analysts who cover Salesforce, 34 have overweight or buy ratings and two have hold ratings, with an average price target of $190.12.

(Visited 1 times, 1 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top