Salesforce.com Eyes New 52-Week High on Results, Guidance

Technology

Published: November 18, 2015 4:23 pm

Last Updated: January 13, 2020 5:02 pm

Salesforce.com Inc. (NYSE: CRM) reported third quarter 2016 results after the markets closed Wednesday. The customer relationship management software company posted adjusted diluted earnings per share (EPS) of $0.21 on revenues of $1.71 billion. In the third quarter of 2015, Salesforce.com reported EPS of $0.14 on revenues of $1.38 billion. The Thomson Reuters estimates for the third quarter called for EPS of $0.19 and $1.7 billion in revenue.

On a GAAP basis, the company posted a net loss per share of $0.04. Deferred revenues on the balance sheet totaled $2.85 billion as of October 31st, up 28% year-over-year and 30% in constant currency.

The company guided fourth quarter revenues to a range of $1.782 to $1.792 billion, an increase of 23% to 24% above the fourth quarter a year ago. GAAP loss per share is estimated in a range of $0.08 to $0.09 and adjusted EPS is estimated at $0.18 to $0.19. The consensus estimates call for EPS of $0.19 on revenues of $1.78 billion.

For the full 2016 fiscal year Salesforce.com estimates a GAAP loss of $0.11 to $0.12 and adjusted EPS of $0.74 to $0.75 on revenues of $6.64 to $6.65 billion. The consensus estimate calls for EPS of $0.73 on revenues of $6.62 billion.

Guidance for fiscal year 2017 beginning in February 2016 calls for revenue of approximately $8.0 billion to $8.1 billion, an increase of 20% to 22% year-over-year. Additional guidance will be provided when Salesforce.com reports fourth quarter results in February.

Profit and revenue guidance for the year is improved and the company beat third-quarter estimates for both revenues and profits. Shares will enjoy a nice boost from the combination.

Shares closed at $77.35 today, up about 0.1%, and traded up nearly 4% after-hours at $80.39, above the 52-week range of $53.44 to $79.82. Thomson Reuters had a consensus analyst price target of $82.35 before today’s report.

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