Will Solid Salesforce.com Results Overcome No Buyout News
Salesforce.com Inc.Salesforce.com, Inc. (NYSE: CRM) reported its most recent financial results after the markets closed on Wednesday. The company had $0.16 in earnings per share (EPS) on $1.51 billion billion in revenue compared to Thomson Reuters consensus estimates of $0.14…
Salesforce.com, Inc. (NYSE: CRM) reported its most recent financial results after the markets closed on Wednesday. The company had $0.16 in earnings per share (EPS) on $1.51 billion billion in revenue compared to Thomson Reuters consensus estimates of $0.14 in EPS on $1.50 billion in revenue. The same period from the previous year had $0.11 in EPS on $1.23 billion in revenue.
On the balance sheet, as of the end of April, deferred revenue totaled $3.06 billion, an increase of 31% year over year, and 36% in constant currency. Unbilled deferred revenue totaled roughly $6.0 billion, up 25% year over year.
The company gave guidance for the second quarter and the full year. For the second quarter Salesforce.com expects EPS in the range of $0.17 to $0.18 and $1.59 billion to $1.60 billion in revenue compared to consensus estimates of $0.17 in EPS on $1.59 billion in revenue. As for the full year the company expects EPS to be in the range of $0.69 to $0.71 and $6.52 billion to $6.55 billion in revenue versus consensus estimates of $0.69 in EPS on $6.51 in revenue.
Total cash, cash equivalents and marketable securities finished the quarter at $1.92 billion.
Marc Benioff, Chairman and CEO of Salesforce, commented on earnings:
Salesforce has surpassed the $6 billion annual revenue run rate faster than any other enterprise software company, and our current outlook puts us on track to reach a $7 billion revenue run rate later this year. Our goal is to be the fastest to reach $10 billion in annual revenue.
A few analysts weighed in on Salesforce.com before it reports earnings:
- Jeffries reiterated an Underperform rating with a $49 price target.
- D.A. Davidson reiterated a Neutral rating and raised its price target to $73 from $66.
- RBC Capital reiterated an Outperform rating with a $79 price target.
Shares of Salesforce.com closed Wednesday down 1.9% at $70.16 on a 52-week trading range of $49.62 to $78.46. Following the release of the financial results, shares were up 3.2% at $72.41 in after-hours trading. The stock has a consensus analyst price target of $76.90.
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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.
