What Analysts Are Saying About Salesforce After Earnings
Salesforce released its fiscal third-quarter financial results after the markets closed on Tuesday. Overall investors were happy with these results and analysts seemed to agree.
Salesforce.com Inc. (NYSE: CRM) released its fiscal third-quarter financial results after the markets closed on Tuesday. Overall, investors were happy with these results and analysts seemed to agree.
Here, 24/7 Wall St. has included some highlights from the earnings report, as well as what analysts are saying about the stock after the fact.
The company posted $0.61 in earnings per share (EPS) and $3.39 billion in revenue. That compared with consensus estimates of $0.50 in EPS and revenue of $3.37 billion, as well as the $0.39 per share and $2.68 billion reported in the same period of last year.
During the latest quarter, revenues increased by 26% year over year, as well as 26% in constant currency. Subscription and Support revenues were $3.17 billion, an increase of 26%, and Professional Services and other revenues were $224 million, an increase of 15%.
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Separately, unearned revenue was $5.38 billion, an increase of 25% from last year and 26% in constant currency.
Looking ahead to the fiscal fourth quarter, the company expects to see EPS in the range of $0.54 to $0.55 and revenue between $3.551 billion and $3.561 billion. Consensus estimates call for $0.57 in EPS and $3.53 billion in revenue for the quarter.
Here’s what analysts had to say following the earnings report:
- Credit Suisse reiterated a Buy rating with a $175 price target.
- Robert Baird maintained it at Outperform but lowered its target to $165 from $180.
- Citigroup maintained a Buy rating and raised its price target to $183 from $178.
- JPMorgan reiterated a Buy rating with a $160 price target.
- RBC reiterated a Buy rating with a $182 price target.
- BMO Capital Markets reiterated an Outperform rating with a $175 target.
- Goldman Sachs reiterated a Buy rating with a $168 price target.
- Sanford Bernstein reiterated a Neutral rating and a $149 price target.
Shares of Salesforce closed on Friday at $142.76, with a consensus analyst price target of $172.22 and in a 52-week range of $98.68 to $161.19.
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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.
