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.
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
, a 6.6% rise on the Nasdaq Composite Index
, and a 3.9% gain on the First Trust Cloud Computing ETF
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.