Salesforce Earnings Aren’t Even The Biggest Mover For This Stock
Salesforce released its most recent quarterly results after the close and confirmed that it would be acquiring Slack.
Salesforce.com, Inc. (NYSE: CRM | CRM Price Prediction) released fiscal third-quarter financial results after markets closed Tuesday. The firm said that it had $1.74 in earnings per share (EPS) and $5.42 billion in revenue, compared with consensus estimates that called for $0.75 in EPS and $5.25 billion in revenue. The same period from last year had $0.75 in EPS and $4.51 billion in revenue.
Management noted that the company had another record quarter. At the same time, it announced that it is acquiring Slack in a cash-and-stock deal.
Under the terms of the acquisition, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, representing an enterprise value of approximately $27.7 billion based on the closing price of Salesforce’s common stock on November 30.
In terms of earnings, revenues grew 20% year over year, and 19% in constant currency in the third quarter.
Subscription and support revenues totaled $5.085 billion, an increase of 20.0%. Professional services and other revenues increased by 21.9% to $334 million.
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Looking ahead to the fiscal fourth quarter, the company expects to see EPS in the range of $0.73 to $0.74 and revenue in the range of $5.665 billion to $5.675 billion. Consensus estimates are calling for $0.86 in EPS and $5.52 billion in revenue for the coming quarter.
Total cash, cash equivalents and marketable securities at the end of the first quarter were $9.49 billion.
Shares of Salesforce closed Tuesday at $241.61, with a 52-week range of $115.29 to $284.50. The consensus analyst price target is $281.03. Following the announcement, the stock was initially down over 3% at $233.00 in the after-hours session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
