174.81 +0.22 (0.13%)
After hours: 4:11PM EDT
|Bid||173.97 x 1400|
|Ask||174.03 x 800|
|Day's Range||170.70 - 174.93|
|52 Week Range||115.29 - 195.72|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||1,163.93|
|Earnings Date||Aug 20, 2020 - Aug 24, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||194.38|
In spite of a positive quarter with record revenue that beat analysts' estimates, Salesforce stock was taking a hit today because of lighter guidance. Wall Street is a tough audience. The guidance, which was a projection for next quarter's earnings, was lighter than what the analysts on Wall Street expected.
The global death toll from the coronavirus that causes COVID-19 climbed above 360,000 on Friday, as Brazil, South Korea, the Philippines, Iran and Portugal all reported spikes in infections.
Wall Street's main indexes retreated on Friday as investors were cautious ahead of a U.S. response to China's national security law on Hong Kong that threatens to take some shine off another month of strong gains for the stock market. President Donald Trump, who has warned of a tough response to China's move, is expected to hold a news conference at 2 p.m. ET (1800 GMT).
The coronavirus stock market rally faced China tensions and a mini-sector rotation, but growth stocks did OK after some wild swings.
The company said in a statement that the reduced guidance reflects “current assumptions related to the extent to which the pandemic will affect the business going forward.”
I can comfortably add to CRM should this selloff become severe, and I think that's what I want to do.
The S&P 500 and Dow slipped on Friday as investors were nervous ahead of a U.S. response to China's national security law on Hong Kong that threatens to take the shine off another month of strong gains for the stock market. President Donald Trump, who has warned of a tough response to China's move, is expected to make an announcement later in the day.
U.S. stocks ended the session on May 28 mostly in the negative territory, as equities took a dive in the final trading hour after President Donald Trump said he would hold a news conference on China on May 29.
On Thursday afternoon, the cloud CRM software giant reported April quarter (fiscal first quarter) revenue of $4.87 billion and non-GAAP EPS of $0.70, slightly topping consensus analyst estimates of $4.85 billion and $0.65. Revenue officially rose 30% annually, and was up 23% if one excludes $273 million of subscription and support revenue provided by business intelligence software vendor Tableau Software, which Salesforce acquired for $15.7 billion last August. For the July quarter, Salesforce is guiding for revenue of $4.89 billion to $4.9 billion and non-GAAP EPS of $0.66 to $0.67, below consensus estimates of $5.04 billion and $0.74.
For his second "Executive Decision" segment of Mad Money Thursday night, Jim Cramer also spoke with Marc Benioff, CEO of Salesforce.com , which reported a weaker than anticipated quarter with disappointing guidance. When asked about their business, Benioff touted AT&T Wireless as a big win for his company. Let's check the charts of CRM again now that our $173 price target has been exceeded.
Salesforce.com Inc. shares were down 3% in after-hours trading Thursday after the enterprise-content platform reported fiscal first-quarter results that were largely in line with Wall Street estimates but offered guidance that fell short.
Stocks inched lower as investors worried about increased tensions between Washington and Beijing, focusing on what President Donald Trump might say in a news conference on China planned for Friday.
The S&P 500 and the Dow were set to open lower on Friday as investors braced for a U.S. response to China's national security law on Hong Kong, threatening to take the shine off another month of strong gains for Wall Street. President Donald Trump is due to make an announcement later in the day and has vowed a tough response to China's move, which many fear could erode some of the U.S. economic privileges that Hong Kong enjoys. "If Trump decides to proceed with mild action, like travel and/or financial sanctions on Chinese officials, we don't expect equities to tumble much," said Charalambos Pissouros, Cyprus-based senior market analyst at JFD Group.
Futures: The coronavirus stock market rally awaits President Trump's press conference on China, as his feud with Twitter escalates. Salesforce and Zscaler are key earnings movers.
U.S. stock futures dropped on Friday as investors braced for President Donald Trump's response to China's national security legislation for Hong Kong, threatening to take the shine off another month of strong gains for Wall Street. Trump is due to make an announcement later in the day and has vowed a tough U.S. response to China's move, which many fear could erode some of the U.S. economic privileges that Hong Kong enjoys.
Shares in Salesforce.com (CRM) pulled back 3.5% in after-hours trading on weaker-than-expected guidance due to macro uncertainty. That was despite solid results for the fiscal first quarter including Q1 Non-GAAP EPS of $0.70 ($0.01 above consensus) and GAAP EPS of $0.11 ($0.10 above consensus).Revenue of $4.87B, up over 30% year-over-year, also beat consensus expectations by $20M and operating cashflow came in at $1.86B.However, F2Q total revenue guidance of $4.89–4.90B (+22% to +23% y/y) fell short of the $5.04B consensus, while EPS guidance of $0.66–0.67 was also below the $0.70 consensus.Similarly, FY2021 guidance was revised lower for COVID-19, with total revenue lowered by ~$1.0–1.1B to ~$20.0B (vs $20.63B consensus) and EPS guidance lowered by ~$0.23 to $2.92–2.95 (vs $3.06 consensus estimate).The guidance revisions were attributed to IT spending normalizing next year, downtick in revenue retention, shorter contract duration, and non-recurring payments in F1Q.Following the report, Oppenheimer’s Brian Schwartz reiterated his CRM buy rating and $195 price target (8% upside potential).“The magnitude of the revenue reduction is somewhat difficult to follow given the constructive pipeline commentary and attractive new opportunities from COVID-19 in Public Sector, Financial Services, Healthcare, and with Work.com, and does little to explain the new FY2021 revenue guidance other than assuming a higher level of conservatism” he wrote.Nonetheless, the analyst is staying onside, concluding: “While CRM’s guidance is more cautious than peers and recovery is not expected until early FY:2022, we see decent valuation support at 7x recurring revenues.”Indeed, the stock retains its Strong Buy Street consensus with 17 recent buy ratings, 1 hold rating and 1 sell rating. The $191 average analyst price target indicates upside potential of 5%. Shares are currently trading up 11% year-to-date. (See CRM stock analysis on TipRanks).Related News: Apple Snaps Up AI Startup Inductiv, As Analysts Boost PTs On Store Reopenings KKR Invests $1.5 Billion in Reliance’s Jio Platforms In Biggest Deal In Asia Microsoft Buys Metaswitch For Cloud-Based Telecoms Move, 5G Expansion More recent articles from Smarter Analyst: * Elon Musk Reaps Payout Worth $775M, As Analyst Admits Tesla Is ‘Turning A Corner’ * Costco Pulls Back On Earnings; Top Analyst Sees Buying Opportunity * Cisco To Buy ThousandEyes For Reported $1B; Top Analyst Sees Strong Synergy Potential * AutoZone Surprises with Business as Usual Quarter
Salesforce.com (CRM) delivered earnings and revenue surprises of 1.45% and 0.28%, respectively, for the quarter ended April 2020. Do the numbers hold clues to what lies ahead for the stock?
(Bloomberg) -- Salesforce.com Inc. trimmed its annual revenue and profit forecasts, indicating that the coronavirus-induced recession has weakened demand for the software maker’s cloud applications. Shares declined 4% in extended trading on the news.Sales in fiscal 2021 will be about $20 billion, down from an earlier projection of as much as $21.1 billion, the San Francisco-based company said Thursday in a statement. Analysts, on average, estimated $20.7 billion.The company expects profit, excluding some items, of $2.93 to $2.95 a share, compared with analysts’ projection of $3.14.Chief Executive Officer Marc Benioff, now heading the company solo after co-CEO Keith Block stepped down from his post in February, pledged in March that Salesforce wouldn’t conduct major job cuts for 90 days, and encouraged other CEOs to make the same promise. Earlier this month, the company unveiled software to help businesses safely reopen their offices with systems that manage employees’ shifts and facility cleaning schedules.“The guidance is a bit disappointing when everyone is watching to see how Salesforce does because it’s going to be a bellwether for a lot of other folks,” Rebecca Wettemann, an analyst at Valoir Inc., said in an interview. “It reflects the difficult times right now.”Shares fell to a low of $172.72 in extended trading after closing at $181.10 in New York. The stock has climbed 11% this year.In the fiscal first quarter, sales increased 30% to $4.87 billion from a year earlier. Adjusted profit was 70 cents a share.“Our results, amidst this global crisis, demonstrated our ability to execute at speed, innovate at scale and the strength of our business model,” Benioff said in the statement.Revenue from Sales Cloud, the flagship product, increased 16% to $1.25 billion. The company leads the market for sales-tracking software, but growth rates have slowed over time.Service Cloud sales increased about 23% to $1.25 billion in the period ended April 30, narrowly surpassing Sales Cloud. The software maker offers this tool so companies can communicate with field employees and customers, an area where it faces competition from ServiceNow Inc., Zendesk Inc. and others.(Updates with comments from analyst in fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Salesforce earnings edged by views as the company recorded a huge investment gain from its stake in Zoom Video. Amid the Covid-19 emergency, Salesforce guidance came in below expectations.