What to Expect When Salesforce Reports Tuesday

December 2, 2019 by 247chrislange

Salesforce.com Inc. (NYSE: CRM) is scheduled to release fiscal third-quarter financial results after markets close on Tuesday. The consensus estimates are calling for $0.66 in earnings per share (EPS) and $4.45 billion in revenue. The same period of last year reportedly had $0.61 in EPS and $3.39 billion in revenue.

In terms of guidance for this quarter, the company previously said that it expects to see EPS in the range of $0.65 to $0.66 and revenue between $4.44 billion and $4.45 billion.

This top company has reported solid fiscal 2019 results so far as billings have drastically improved, and this past quarter was no exception.

In the fiscal second quarter, revenues grew 22% year over year, and 23% in constant currency. Subscription and support revenues were $3.75 billion, an increase of 22%. Professional services and other revenues increased by 14% to $252 million.

Excluding Monday’s move, Salesforce had underperformed the broad markets, with the stock up nearly 19% year to date. In the past 52 weeks, the stock was up only 16%.

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

  • Jefferies has a Buy rating with a $195 price target.
  • Wedbush rates it as Outperform with a $192 target price.
  • JMP Securities has a Buy rating with a $191 price target.
  • Cowen has an Outperform rating and a $195 price target.
  • Baird has a Buy rating with a $185 price target.
  • Mizuho has a Buy rating with a $195 price target.

Shares of Salesforce traded down about 1% to $161.38 on Monday, in a 52-week range of $120.16 to $167.56. The consensus price target is $189.20.