What to Expect When Salesforce Reports After the Close

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Salesforce.com Inc. (NYSE: CRM) is scheduled to release its fiscal first-quarter earnings after the markets close on Tuesday. The consensus estimates are calling for $0.61 in earnings per share (EPS) and $3.68 billion in revenue. The same period of last year reportedly had $0.74 in EPS and $3.01 billion in revenue.

The company previously addressed guidance for this quarter in its most recent report, wherein it called for EPS in the range of $0.60 to $0.61 and revenue between $3.67 billion and $3.68 billion.

Also at that time, Salesforce reported subscription and support revenues of $3.38 billion, an increase of 26% year over year, while professional services and other revenues were $228 million, an increase of 16%.

Salesforce reported solid fiscal 2019 results overall, and the stock is on Merrill Lynch’s US 1 List. The company posted another year of outstanding revenue growth, surpassing $13 billion in revenue faster than any other enterprise software company in history.

Excluding Tuesday’s move, Salesforce has underperformed the broad markets, with its stock up only 6% year to date. In the past 52 weeks, the stock actually is up about 12%.

A few analysts weighed in on Salesforce ahead of the report:

  • JPMorgan has a Buy rating with a $180 price target.
  • Wedbush has an Outperform rating and a $192 price target.
  • Merrill Lynch has a Buy rating and a $200 price target.
  • Nomura has a Buy rating.
  • OTR Global has a Positive rating.

Shares of Salesforce were up about 1% at $146.57 on Tuesday, in a 52-week range of $113.60 to $167.56. The consensus price target is $182.18.


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