What to Expect When Salesforce Reports After the Close

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Salesforce.com Inc. (NYSE: CRM) is set to release its fiscal fourth-quarter financial results after the markets close on Monday. Consensus estimates call for $0.55 in earnings per share (EPS) and $3.56 billion in revenue. The same period of last year reportedly had $0.35 in EPS and $2.85 billion in revenue.

This firm reported fiscal third-quarter results that exceeded expectations across the board. Billings growth of 27% exceeded consensus 2019 forecast and implied new sub-annual contract value grew 20% on an organic basis, versus consensus implied 7% decline. While fiscal fourth-quarter billing guidance came in considerably below Wall Street expectations, it’s not unusual for the company to issue conservative guidance, and analyst field checks indicate a robust deal pipeline for the U.S. business.

Salesforce offers enterprise cloud computing applications and platform services, including Sales Cloud that enables companies to store data, monitor leads and progress, forecast opportunities, gain insights through relationship intelligence and collaborate around sales on desktop and mobile devices.

The company also provides Service Cloud, which enables companies to deliver personalized customer service and support, as well as connect their service agents with customers on various devices. And its Marketing Cloud enables companies to plan, personalize and optimize customer interactions.

Excluding Monday’s move, Salesforce had outperformed the broad markets, with the stock up about 20% year to date. In the past 52 weeks, the stock was up over 41%.

A few analysts weighed in on Salesforce ahead of the results:

  • Merrill Lynch has a Buy rating with a $200 price objective.
  • Stephens has an Overweight rating with a $183 price target.
  • Atlantic Securities has an Overweight rating with a $179 target.
  • Wedbush has an Outperform rating with a $166 price target.

Shares of Salesforce were last seen trading down 5% at $155.99, in a 52-week range of $111.34 to $166.15. The stock has a consensus price target of $174.93.

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