Are Salesforce Q3 Earnings Enough For Investors?

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Salesforce.com, Inc. (NYSE: CRM) released fiscal third-quarter financial results after markets closed Thursday. The firm said that it had $0.75 in earnings per share (EPS) and $4.5 billion in revenue, compared with consensus estimates that called for $0.66 in EPS and $4.45 billion in revenue. The same period from last year had $0.61 in EPS and $3.39 billion in revenue.

During the quarter, revenues grew 33% year over year, and 34% in constant currency.

Subscription and support revenues were $4.24 billion, an increase of 34%. Professional services and other revenues increased by 22% to $274 million.

Looking ahead to the fiscal first quarter, the company expects to see EPS in the range of $0.54 to $0.55 and revenue in the range of $4.743 billion to $4.753 billion. Consensus estimates are calling for $0.62 in EPS and $4.72 billion in revenue for the coming quarter.

Marc Benioff, chairman & co-CEO of Salesforce, commented:

We’re now on track to double our revenue in five years. With Customer 360, only Salesforce is providing companies with a single source of truth, bringing them even closer to their customers across every touchpoint.

Shares of Salesforce closed at $161.56, with a 52-week range of $120.16 to $167.56. The consensus analyst price target is $189.20. Following the announcement, the stock was initially down about 1% at $160.20 in the after-hours session.

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