How Analysts View Salesforce After Earnings
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…
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.
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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.
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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.
