Technology

What to Expect When Salesforce Reports After the Close

Salesforce.com Inc. (NYSE: CRM) is set to report its most recent quarterly results after the markets close on Thursday. The consensus forecast is $0.69 in earnings per share (EPS) and $4.85 billion in revenue. In the fiscal first quarter of last year, the cloud-based software company posted $0.93 in EPS and $3.74 billion in revenue.

The San Francisco-based company previously issued guidance for this quarter that called for EPS in the range of $0.70 to $0.71 and revenue between $4.875 billion and $4.885 billion.

In the fiscal fourth quarter, revenues grew 35% year over year, and 34% in constant currency. Subscription and support revenues were $4.56 billion, an increase of 35%. Professional services and other revenues increased by 26% to $288 million.

This quarter will be the first with just Mark Benioff at the helm, as Keith Block stepped down as co-CEO back in February. Marc Benioff is currently the board chair and sole chief executive, with Block now an advisor to the CEO.

Excluding Thursday’s move, Salesforce.com stock had outperformed the S&P 500 and Dow Jones industrial average with a gain of about 8% year to date. In the past 52 weeks, the share price was up closer to 14%.

Here’s what analysts said ahead of the Salesforce report:

  • Jefferies has a Buy rating with a $205 price target.
  • SunTrust Banks has a Buy rating and a $210 price target.
  • RBC has an Outperform rating with a $210 target price.
  • Cowen has an Outperform rating with a $200 price target.
  • Oppenheimer rates it as Outperform with a $195 price target.
  • BofA Securities has a Buy rating with a $210 target price.
  • JMP Securities has a Market Perform rating and a $191 target.

Salesforce.com stock traded up about 3% at $181.64 on Thursday, in a 52-week range of $115.29 to $195.72. The consensus price target is $194.38.