Are Analysts Growing Too Optimistic on Salesforce After Earnings?
Salesforce.com reported its most recent quarterly results after the markets closed on Tuesday. While results were incredibly positive, analysts juiced this stock and now it is going parabolic.
Salesforce.com Inc. (NYSE: CRM | CRM Price Prediction) reported its most recent quarterly results after the markets closed on Tuesday. While results were incredibly positive, analysts juiced this stock and now it is going parabolic.
24/7 Wall St. has included some highlights from the earnings report, as well as what analysts are saying about Salesforce after the fact.
The firm said that it had $1.44 in earnings per share (EPS) and $5.15 billion in revenue, versus consensus estimates that called for $0.67 in EPS and $4.9 billion in revenue. The same period of last year reportedly had $0.66 in EPS and $4.00 billion in revenue.
Subscription and support revenues for the quarter were $4.84 billion, an increase of 29% year over year. Professional services and other revenues for the quarter were $0.31 billion, an increase of 23%.
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Looking ahead to the fiscal third quarter, the company is calling for EPS in the range of $0.73 to $0.74 and revenue between $5.24 billion and $5.25 billion. The consensus estimates are $0.83 in EPS and $5.28 billion in revenue for the quarter.
Here’s what analysts had to say:
- Morgan Stanley reiterated an Overweight rating and raised its price target to $275 from $195.
- Cowen reiterated an Outperform rating and raised its price target to $270 from $210.
- Truist reiterated a Buy rating and raised its price target to $287 from $210.
- Monness Crespi & Hardt reiterated a Buy rating and raised its price target to $275 from $195.
- Loop Capital reiterated a Sell rating and raised its price target to $160 from $150.
- Oppenheimer reiterated an Outperform rating and raised its price target to $265 from $205.
- Canaccord Genuity reiterated a Buy rating and raised its price target to $270 from $200.
- Citigroup reiterated a Buy rating and raised its price target to $300 from $196.
- Wedbush reiterated an Outperform rating and raised its price target to $300 from $250.
- Raymond James reiterated a Strong Buy rating and raised its price target to $255 from $230.
- Stifel reiterated a Buy rating and raised its price target to $295 from $220.
- Mizuho reiterated a Buy rating and raised its price target to $275 from $230.
- RBC reiterated an Outperform rating and raised its price target to $275 from $220.
- Piper Sandler reiterated an Overweight rating and raised its price target to $285 from $210.
- Credit Suisse reiterated an Outperform rating and raised its price target to $245 from $200.
- Goldman Sachs reiterated a Buy rating and raised its price target to $252 from $220.
- JPMorgan reiterated a Buy rating and raised its price target to $250 from $200.
Salesforce stock traded up about 27% on Wednesday, at $274.58 in a 52-week range of $115.29 to $277.95. The consensus price target is $220.17.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
