Salesforce CRM saw its stock price climb over 2% to touch a new all-time high Monday after it announced a partnership with Apple AAPL that will see the cloud-based customer relationship management firm offer new apps for iPhones and iPads. Salesforce’s Apple deal makes CRM stock look even more enticing at the moment.
Salesforce and Apple said on Monday that their partnership will initially focus on a redesigned Salesforce mobile app exclusively for iOS. The app will feature everything from Face ID and Siri shortcuts to Apple’s business chat.
The two companies are also set to develop the first Salesforce mobile software development kit for Apple’s Swift programming language. “The native SDK will enable businesses and developers to build and deploy apps for iPhone and iPad on the Salesforce Lightning Platform, adding to the hundreds of thousands of iOS apps for business in the App Store today,” according to a Salesforce press release.
Lastly, the two companies will offer an iOS app development course on Salesforce’s free, online learning portal called Trailhead. The courses, among other educational initiatives, come in addition to the array of free developer class offerings Salesforce already provides. “With the powerful combination of iPhone, iPad and iOS—the best hardware and software for business—together with native Salesforce apps and the new Salesforce SDK, we can deliver great customer experiences for businesses around the world,” Apple CEO Tim Cook said in a statement.
Salesforce’s new mobile app is set to launch in early 2019. The partnership with the tech titan further solidifies Salesforce’s standing and likely helps improve its already impressive growth outlook.
Overview & Quick Outlook
Salesforce operates within the quickly growing customer relationship management industry and has established itself as a software-as-a-service power that seems ready to grow as more businesses adapt to an almost completely digital age. Salesforce purchased Quip roughly two years ago to begin to offer Microsoft MSFT Office-like products designed for the cloud. These offerings include a word processor and spreadsheets, and more recently, slideshows.
Just last week, Salesforce announced voice assistance features for its Einstein artificial intelligence system called Einstein Voice. The service allows users to conversationally update tasks on Salesforce, receive audible briefings, explore Salesforce’s dashboard, and more. “We're in the midst of an incredible technological shift, where the power of voice is fundamentally changing the way we work," Salesforce Co-Founder and CTO Parker Harris said in a company statement.
Looking ahead, our current Zacks Consensus Estimate is calling for Salesforce’s third-quarter revenues to climb by 25.7% to hit $3.37 billion. CRM’s fiscal year revenues are also projected to surge by a 25.7% to reach $13.17 billion.
At the bottom end of the income statement, Salesforce’s adjusted quarterly earnings are projected to climb by 28.2% to hit $0.50 per share. Meanwhile, Salesforce’s full-year EPS figure is expected to soar by 87% to reach $2.52 per share. Plus, Salesforce has earned 18 upward earnings estimate revisions for its current fiscal year over the last 30 days, against zero downward changes.
Salesforce’s positive full-year earnings estimate revision activity helps the company earn a Zacks Rank #1 (Strong Buy).
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