What to Expect When Salesforce Reports After the Close

Salesforce.com Inc. (NYSE: CRM) is expected to release its fiscal second-quarter financial earnings report after the markets close on Tuesday. The consensus estimates from Thomson Reuters call for $0.32 in earnings per share (EPS) and $2.51 billion in revenue. The same period of last year reportedly had EPS of $0.24 and $2.04 billion in revenue.

The company’s previously issued guidance for the fiscal second quarter pegged revenue at between $2.51 billion and $2.52 billion, with EPS in the range of $0.31 to $0.32. Current analyst estimates already seem to match that.

In its previous quarter, Salesforce posted a 24% increase in revenues, ultimately pushing its stock to all-time highs. At the same time deferred revenue jumped 26%. At the rate this firm has been performing, it seems that there is nowhere to go but up.

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The company has recently been upgraded at several top Wall Street firms and looks to be breaking out. Ahead of the earnings report a few analysts weighed in on Salesforce:

• Credit Suisse reiterated an Outperform rating with a $110 price target.
• RBC has a Buy rating with a $102 price target.
• SunTrust Banks has a Buy rating with a $110 price target.
• Northland Securities has a Buy rating with a $105 price target.
• Jefferies has a Hold rating with an $80 price target.
• Piper Jaffray has an Overweight rating with a $110 price target.
• BTIG has a Buy rating with a $100 price target.

So far in 2017, Salesforce has outperformed the broad markets, with the stock up 34%. Over the past 52 weeks, the stock is only up 18%.

Shares of Salesforce were last seen at $92.25, with a consensus analyst price target of $101.33 and a 52-week range of $66.43 to $93.32.

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