Home / Others / Salesforce's increase in after-profits inventories was beaten, as were earnings prospects for fiscal year 2020

Salesforce's increase in after-profits inventories was beaten, as were earnings prospects for fiscal year 2020



Shares of Salesforce.com Inc. rebounded in the extended session on Tuesday after quarterly results and next year's customer relationship management software company's revenue outlook surpassed estimates of revenue. Wall Street.

Salesforce

CRM + 0.89%

equities rose 7.4% after normal hours, after an initial 3% decline at the time of the earnings release. Shares rose 0.9% to close the regular session at $ 127.54 on Tuesday, compared to a 0.3% rise in the S & P 500 index.

SPX, + 0.33%

and a rise of less than 0.1% in the Nasdaq Composite index, very technology-driven

COMP + 0.01%

For the fourth quarter, Salesforce said it expected an adjusted profit of 54 to 55 cents a share on a business figure of between $ 3.55 and $ 3.56 billion, while analysts said on an increase of 57 cents per share on a $ 3.52 billion business figure.

The company expects adjusted earnings of between $ 2.60 and $ 13.2 billion for fiscal 2019 and a business figure of between $ 15.2 billion and $ 16 billion for the fiscal year 2020 , while adjusted revenues would rise to adjusted earnings of $ 2.60 to $ 2.61. and revenues of $ 15.8 billion for fiscal year 2020.

"The company has provided its initial guidance for fiscal year 20 of + 20-21% over expectations of 18-20%, which should help dispel concerns about a declining demand environment," he said. said Kirk Materne, an analyst at Evercore ISI. Materne has an outperformance rating and a target price of $ 170.

At Tuesday's teleconference, Salesforce co-CEO and President Marc Benioff confirmed the company's outlook, saying he did not expect the economy to suffer an economic slowdown or a recession. as some fear.

"I think growth is strong because I have seen so many investments this year reporting to these companies," said Benioff. "So I see many years ahead of us for good and solid growth of the economy."

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The San Francisco-based company reported third quarter net income of $ 105 million, or 13 cents a share, compared with $ 107 million, or 14 cents a share, for the same period last year. . Adjusted earnings, however, was 61 cents per share.

Analysts surveyed by FactSet were expecting earnings per share of 50 cents, while Salesforce expected earnings of 49 to 50 cents per share. Estimize, a software platform that leverages crowdsourcing among hedge fund executives, brokerages, buy-side and third-party analysts, has claimed earnings per share of 55 cents.

Revenues reached $ 3.39 billion compared to $ 2.70 billion for the same quarter last year. According to analysts surveyed by FactSet, Wallforce expects a turnover of $ 3.37 billion from Salesforce, while the company had forecast a turnover of $ 3.36 billion from 3.37 billion USD. Estimate the expected revenue at $ 3.39 billion.

Bills for the quarter increased nearly 28 percent from the previous year to $ 2.89 billion, compared to a consensus of $ 2.68 billion among analysts.

Of the 42 analysts who cover Salesforce, 38 have buy or overweight ratings, four have holding ratings and no one has any underwriting or underwriting ratings, with an average price target of 172.08 $.


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