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Notably, the company has generated a positive surprise over the last four quarters, averaging 37.6%.
In the last quarter, the group posted non-GAAP earnings of 93 cents per share, well ahead of Zacks consensus estimate of 61 cents, and also improving over the same quarter. 74 cents.
Management indicated that mark-to-market adjustments to the company's strategic investments increased earnings by 27 cents per share.
Revenues of $ 3.74 billion increased 24 percent over the previous year and also exceeded Zacks' consensus estimate of $ 3.68 billion. In addition, sales grew by 26% in constant currency (cc).
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "What to expect in the second quarter"data-reactid =" 16 ">What to expect in the second quarter
For the second quarter of fiscal year 2020, revenues are expected to be between $ 3.94 and $ 3.95 billion.
The Zacks Consensus estimate of $ 3.95 billion in sales shows growth of about 20.4% over the figure published the previous year.
Non-GAAP earnings are expected to be between 46 and 47 cents per share. Zacks' consensus estimate of quarterly earnings to report is 47 cents, down 33.8% from the same value as last year.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "salesforce.com, inc. Price and surprise EPS"data-reactid =" 20 ">salesforce.com, inc. Price and surprise EPS
salesforce.com, inc. Price and surprise EPS
salesforce.com, inc. price-eps-surprise | salesforce.com, inc. Quote
Let's see how things stand before this announcement.
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Salesforce results for the second quarter of the year are likely to benefit from a robust demand environment as customers undergo a major digital transformation. The rapid adoption of the company's cloud solutions is a downwind.
In particular, salesforce's strong product portfolio helps drive strong growth in subscription and support products, which make up the bulk of its products.
The company's performance should also be based on a strong partner ecosystem. During the last quarter indicated, the partners participated in 63% of the new contracts of the company. In addition, the strong growth of the international market, aided by the growing base of partners, is an advantage.
In addition, the company will continue to benefit from its strategic acquisitions. The MuleSoft takeover, which generated $ 170 million in the first quarter of the year, is a major positive element. In addition, the acquisition of Salesforce.org is expected to generate revenues of approximately $ 40 to $ 50 million in the July quarter.
In this regard, it is worth mentioning that during the quarter, the company announced the largest acquisition of its history, the Big Data Table Software company. The company is expected to update its revenue forecast for the fiscal year 2020, taking into account the larger contribution of Tableau, which closed on August 1, 2 months ahead of schedule.
However, the major shutdown and system failure of salesforce in May 2019 could have a negative impact on its new contracts and the sale of additional products to existing customers. This makes us fear its results for the coming quarter.
In addition, the transaction costs associated with consolidating Salesforce.org are likely to put the net results of this earnings season under pressure. In addition, the adverse volatility of exchange rates is a persistent surplus.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "What the model says"data-reactid =" 42 ">What the model says
Zacks' proven model conclusively shows that a firm with a Zacks Rank 1 (Strong Purchase), 2 (Purchase) or 3 (Standby) ranking is significantly more likely to exceed estimates if it also has an ESP of positive benefit. It is best to avoid Zack's rank 2 (sales) or 5 (strong sales) actions. You can discover the best stocks to buy or sell before they are declared with our earnings ESP filter.
Salesforce currently has a Zacks Rank of 4 and a profit EPS of -2.00%, making the surprise forecast difficult for the stock of this reporting cycle.
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Below are some values to consider with the right combination of items to beat this season's earnings estimates:
Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" The COO of Cooper Companies, Inc. has an ESP profit of + 1.50% and Zacks Rank # 2. You can see the complete list of the current ranks of Zacks n ° 1. "data-reactid =" 47 "> The COO of Cooper Companies, Inc. has a profit ESP of + 1.50% and a rank of Zacks # 2. You can see the complete list of the current ranks of Zacks n ° 1.
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