Salesforce.com, inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component salesforce.com, inc. (NYSE:CRM) will unveil its latest earnings on Thursday, August 18, 2011. Salesforce.com, Inc. is a cloud computing company, which provides customer relationship management (NYSE:CRM) products to businesses. It offers a technology platform for Internet-based computing, storage and connectivity solutions for customers and developers.

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salesforce.com, inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 4 cents per share, a decline of 75% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved down, but has risen from 3 cents during the last month. For the year, analysts are projecting profit of 24 cents per share, a decline of 63.6% from last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported net income of 6 cents per share versus a mean estimate of 5 cents. Two quarters ago, it reported profit of 12 cents per share.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

Wall St. Revenue Expectations: On average, analysts predict $528.6 million in revenue this quarter, a rise of 34% from the year ago quarter. Analysts are forecasting total revenue of $2.18 billion for the year, a rise of 31.3% from last year’s revenue of $1.66 billion.

Analyst Ratings: Analysts are bullish on this stock with 25 analysts rating it as a buy, none rating it as a sell and 11 rating it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 29.4%, with the biggest boost coming in the most recent quarter when revenue rose 33.8% from the year earlier quarter.

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 97% from the year earlier quarter, while the figure dropped 46.5% in the fourth quarter of the last fiscal year.

Competitors to Watch: Microsoft Corporation (NASDAQ:MSFT), Google Inc. (NASDAQ:GOOG), Oracle Corporation (NASDAQ:ORCL), Servicesource Intl. Inc (NASDAQ:SREV), SAP AG (NYSE:SAP), NetSuite Inc. (NYSE:N), Intl. Business Machines Corp. (NYSE:IBM), Pegasystems Inc. (NASDAQ:PEGA), LivePerson, Inc. (NASDAQ:LPSN), and Constant Contact, Inc. (NASDAQ:CTCT).

Stock Price Performance: During July 15, 2011 to August 12, 2011, the stock price had dropped $20.32 (-13.2%) from $154.40 to $134.08. The stock price saw one of its best stretches over the last year between November 17, 2010 and November 26, 2010 when shares rose for seven-straight days, rising 32.4% (+$35.68) over that span. It saw one of its worst periods between December 21, 2010 and December 31, 2010 when shares fell for eight-straight days, falling 5.1% (-$7.03) over that span. Shares are up $2.08 (+1.6%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

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