Salesforce.com Eyes New 52-Week High on Results, Guidance
Salesforce.com Inc. (CRM) reported third quarter 2016 results after the markets closed Wednesday. The customer relationship management software company posted adjusted diluted earnings per share (EPS) of $0.21 on revenues of $1.71 billion. In the third quarter of 2015, Salesforce.com reported EPS of $0.14 on revenues of $1.38 billion. The Thomson Reuters estimates for the third quarter called for EPS of $0.19 and $1.7 billion in revenue.
On a GAAP basis, the company posted a net loss per share of $0.04. Deferred revenues on the balance sheet totaled $2.85 billion as of October 31st, up 28% year-over-year and 30% in constant currency.
The company guided fourth quarter revenues to a range of $1.782 to $1.792 billion, an increase of 23% to 24% above the fourth quarter a year ago. GAAP loss per share is estimated in a range of $0.08 to $0.09 and adjusted EPS is estimated at $0.18 to $0.19. The consensus estimates call for EPS of $0.19 on revenues of $1.78 billion.
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For the full 2016 fiscal year Salesforce.com estimates a GAAP loss of $0.11 to $0.12 and adjusted EPS of $0.74 to $0.75 on revenues of $6.64 to $6.65 billion. The consensus estimate calls for EPS of $0.73 on revenues of $6.62 billion.
Guidance for fiscal year 2017 beginning in February 2016 calls for revenue of approximately $8.0 billion to $8.1 billion, an increase of 20% to 22% year-over-year. Additional guidance will be provided when Salesforce.com reports fourth quarter results in February.
Profit and revenue guidance for the year is improved and the company beat third-quarter estimates for both revenues and profits. Shares will enjoy a nice boost from the combination.
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Shares closed at $77.35 today, up about 0.1%, and traded up nearly 4% after-hours at $80.39, above the 52-week range of $53.44 to $79.82. Thomson Reuters had a consensus analyst price target of $82.35 before today’s report.
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