How Analysts View Salesforce After Earnings

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Salesforce.com, Inc. (NYSE: CRM) reported fiscal third-quarter financial results after markets closed last Thursday. Although Salesforce is competing with Oracle, the former outperformed this week as a result of strong earnings. These strong earnings may feed the fire for a potential acquisition and analysts are hiking their price targets.

24/7 Wall St. has compiled a list of what analysts are saying after the earnings report as well as some key highlights from it.

Salesforce posted $0.24 in earnings per share (EPS) and $2.14 billion in revenue. The consensus estimates from Thomson Reuters called for $0.21 in EPS and $2.12 billion in revenue. The same period from last year had $0.21 in EPS and $1.71 billion in revenue.

Deferred revenue totaled $3.50 billion, an increase of 23% year-over-year, and 25% in constant currency.

In terms of guidance for the fiscal fourth-quarter, the company expects to see EPS in the range of $0.24 to $0.25 and revenues in the range of $2.267 billion to $2.277 billion. There are consensus estimates that are calling for $0.25 in EPS and $2.24 billion in revenue.

Cash generated from operations totaled $154 million, a decrease of 5% year-over-year. Total cash, cash equivalents and marketable securities finished the quarter at $1.75 billion.

After the report a few analysts weighed in on Salesforce:

  • JMP Securities reiterated a Buy rating.
  • Pacific Crest reiterated a Buy rating with a $95 price target.
  • BTIG reiterated a Buy rating.
  • Goldman Sachs set a Buy rating with a $96 price target.
  • Wedbush reiterated an Outperform rating and raised its price target to $98 from $96.
  • BMO Capital Markets has an Outperform rating but raised its price target to $90 from $86.
  • Mizuho set a Buy rating and jumped its price target to $95 from $85.

Shares of Salesforce closed out the week at $77.77, with a consensus analyst price target of $93.40 and a 52-week trading range of $52.60 to $84.48.