What Analysts Are Saying About Salesforce After Earnings
Salesforce.com released its most recent earnings report late Tuesday, and analysts overall responded positively.
Salesforce.com Inc. (NYSE: CRM) released its most recent earnings report after markets closed Tuesday. This stock has been on a long run upward, posting incredible gains for over the past five years. Although this company is known for having what some might consider a runaway price-to-earnings (P/E) valuation, it hasn’t fallen off yet and continues to hit all-time highs.
24/7 Wall St. has included some highlights from the earnings report, as well as what analysts are saying about the firm after the fact.
The company said that it had $0.33 in earnings per share (EPS) and $2.56 billion in revenue, compared with consensus estimates from Thomson Reuters of $0.32 in EPS and revenue of $2.51 billion. The same period of last year reportedly had EPS of $0.24 and $2.04 billion in revenue.
Subscription and support revenues totaled $2.37 billion, an increase of 26% from last year, while professional services and other revenues were $193 million, an increase of 28%.
[nativounit]
Separately, deferred revenue was $4.82 billion, an increase of 26%, or 25% in constant currency. Unbilled deferred revenue was approximately $10.4 billion, up 30%.
In terms of guidance for the coming quarter, the company expects to see EPS in the range of $0.36 to $0.37 and revenues between $2.64 billion and $2.65 billion. The consensus estimates call for $0.36 in EPS and $2.61 billion in revenue.
[recirclink id=409716]
Analysts had this to say about the stock after earnings:
- Jefferies maintained a Hold rating but raised its price target to $84 from $80.
- Wedbush reiterated an Outperform rating and raised its price target from $105 to $108.
- Stifel reiterated a Buy rating and raised its price target to $110 from $105.
- Credit Suisse reiterated an Outperform rating and raised its target to $115 from $110.
- BMO Capital Markets reiterated an Outperform rating with a $100 price target.
- Drexel Hamilton reiterated a Buy rating with a $111 price target.
- Goldman Sachs has a Buy rating with a $110 price target.
- JPMorgan has a Buy rating with a $120 price target.
- BTIG reiterated a Buy rating with a $100 price target.
Shares of Salesforce were last seen up about 1% at $93.91, with a consensus analyst price target of $101.30 and a 52-week range of $66.43 to $94.60.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
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.
