
When Salesforce.com Inc. (NYSE: CRM) announced its earnings, investors were excited that it has raised fiscal 2017 guidance. As a result of this earnings report, analysts hiked their price targets for this stock.
24/7 Wall St. has included some highlights from the earnings report, as well as what analysts are saying about Salesforce after the fact.
Revenue rose 27% to $1.92 billion, but this would have been up 28% on a constant currency measure. Deferred revenue, a measure of future orders, was up 31% to $4.01 billion. Thomson Reuters had a consensus revenue estimate of $1.89 billion.
Its second-quarter revenue guidance is $2.005 billion to $2.015 billion, versus a $1.98 billion consensus estimate. On forward guidance, Salesforce sees fiscal year 2017 revenue guidance of $8.16 billion to $8.20 billion, versus a consensus number of $8.12 billion. Unbilled deferred revenue of approximately $7.6 billion, up 27%, is expected.
The revenue breakdown showed additional gains on both key metrics in the first quarter. Subscription and support revenues rose 26% to $1.78 billion, and professional services (and other) revenues were up 33% to $141 million.
Quite a few analysts weighed in on Salesforce after earnings were reported:
- Barclays has an Overweight rating and raised its price target to $89 from $88.
- Brean has a Buy rating and raised its price target to $110 from $100.
- Canaccord Genuity has a Buy rating and raised its target from $88 to $95.
- Evercore ISI has a Buy rating and raised its price target to $100.
- Jefferies has a Hold rating and raised its price target to $80 from $74.
- JMP Securities has an Outperform rating and raised its price target from $90 to $92.
- Mizuho has a Buy rating and raised its price target to $100 from $90.
- Oppenheimer has an Outperform rating and raised its target to $95 from $88.
- Baird has an Outperform rating and raised its price target to $90 from $85.
- BTIG has a Buy rating and raised its price target to $100.
- CLSA raised its price target from $89 to $94.
- Deutsche Bank raised its price target to $95 from $90.
- Deutsche Bank has a Buy rating and raised its price target to $95 from $90.
- FBN raised its price target to $100 from $95.
- Goldman Sachs has a Buy rating and raised its target to $105 from $99.
- Raymond James has a Strong Buy rating and raised its target to $100 from $90.
- RBC has an Outperform rating and raised its price target to $92 from $80.
- SunTrust Robinson lifted its price target to $96 from $89.
- UBS has a Buy rating and raised its price target to $100.
- Wedbush raised its price target from $95 to $98.
- Wunderlich raised its price target to $101 from $93.
Share of Salesforce closed trading at $81.03 on Friday. The consensus analyst price target is $95.74, and the 52-week trading range is $52.60 to $82.90.
It’s Your Money, Your Future—Own It (sponsor)
Retirement can be daunting, but it doesn’t need to be.
Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.