Salesforce.com Earnings: Here’s Why the Stock is Down Now

Salesforce.com (NYSE:CRM) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 5.32%.

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Salesforce.com Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 11.11% to $0.1 in the quarter versus EPS of $0.09 in the year-earlier quarter.

Revenue: Rose 28.4% to $893 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Salesforce.com reported adjusted EPS income of $0.1 per share. By that measure, the company missed the mean analyst estimate of $0.1. It beat the average revenue estimate of $887.08 million.

Quoting Management: “Salesforce.com delivered another quarter of strong growth, with constant currency revenue, deferred revenue, and operating cash flow all growing 30% or more year over year,” said Marc Benioff, Chairman and CEO, salesforce.com. “Salesforce.com is now the world’s #1 CRM market share leader according to Gartner.”

Key Stats (on next page)…

Revenue increased 6.99% from $834.68 million in the previous quarter. EPS decreased 23.08% from $0.13 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.12 and has not changed. For the current year, the average estimate is a profit of $0.49, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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