What to Expect When Salesforce Reports After the Close

By Chris Lange Updated Mar 13, 10:24PM EDT · Published Mar 4, 1:20PM EST

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What to Expect When Salesforce Reports After the Close — © salesforce.com

Salesforce.com Inc. (NYSE: CRM | CRM Price Prediction) is set to release its fiscal fourth-quarter financial results after the markets close on Monday. Consensus estimates call for $0.55 in earnings per share (EPS) and $3.56 billion in revenue. The same period of last year reportedly had $0.35 in EPS and $2.85 billion in revenue.

This firm reported fiscal third-quarter results that exceeded expectations across the board. Billings growth of 27% exceeded consensus 2019 forecast and implied new sub-annual contract value grew 20% on an organic basis, versus consensus implied 7% decline. While fiscal fourth-quarter billing guidance came in considerably below Wall Street expectations, it’s not unusual for the company to issue conservative guidance, and analyst field checks indicate a robust deal pipeline for the U.S. business.

Salesforce offers enterprise cloud computing applications and platform services, including Sales Cloud that enables companies to store data, monitor leads and progress, forecast opportunities, gain insights through relationship intelligence and collaborate around sales on desktop and mobile devices.

The company also provides Service Cloud, which enables companies to deliver personalized customer service and support, as well as connect their service agents with customers on various devices. And its Marketing Cloud enables companies to plan, personalize and optimize customer interactions.

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Excluding Monday’s move, Salesforce had outperformed the broad markets, with the stock up about 20% year to date. In the past 52 weeks, the stock was up over 41%.

A few analysts weighed in on Salesforce ahead of the results:

Merrill Lynch has a Buy rating with a $200 price objective.
Stephens has an Overweight rating with a $183 price target.
Atlantic Securities has an Overweight rating with a $179 target.
Wedbush has an Outperform rating with a $166 price target.

Shares of Salesforce were last seen trading down 5% at $155.99, in a 52-week range of $111.34 to $166.15. The stock has a consensus price target of $174.93.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.