Salesforce.com Inc. (NYSE: CRM) is scheduled to release its fiscal first-quarter financial results Wednesday after the markets close. Thomson Reuters has consensus estimates of $0.14 in earnings per share (EPS) on $1.50 billion in revenue. The same quarter from the previous year had $0.11 in EPS on $1.23 billion in revenue.
Earlier 24/7 Wall St. reported that Salesforce.com has become the latest tech darling to enter the Wall Street rumor mill, after reports in late April and early May surfaced about the company hiring bankers to evaluate buyout offers.
This company has been the momentum stock trader’s dream over the past few years as the demand for customer relationship management software has skyrocketed. Salesforce.com has been a super-hot name recently as buyout chatter has erupted on Wall Street and everybody from Microsoft to IBM has been mentioned as a potential suitor for the company. While no deal has been announced, the Cowen analysts feel that the mergers and acquisition rumors will not go away anytime soon.
Cowen does point out that while the stock has somewhat decoupled from actual earnings data, the firm recommends owning the stock into the earnings release. Cowen feels that the company will report upside to revenues and billings, and while there may be some currency headwinds selling to foreign customers, it should not be enough to derail fiscal 2016 guidance.
Many Wall Street analysts see the company’s growing portfolio of enterprise-class solutions as not only enhancing the brand, but helping to achieve access into bigger companies.
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A few analysts weighed in on Salesforce.com before it reports earnings:
- Jeffries reiterated an Underperform rating with a $49 price target.
- D.A. Davidson reiterated a Neutral rating and raised its price target to $73 from $66.
- RBC Capital reiterated an Outperform rating with a $79 price target.
Shares of Salesforce.com were down 2% at $70.00 on Wednesday afternoon. The stock has a consensus analyst price target of $76.90 and a 52-week trading range of $49.62 to $78.46.
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