Salesforce.com | $CRM Stock | Shares Rise After Earnings Report

0
2454
Salesforce.com Logo

Salesforce.com, Inc. (NYSE: CRM)

 

On Tuesday May 29th, 2018, salesforce.com reported their first fiscal quarterly earnings after the market closed at 4 p.m. Eastern Daylight Time. The behemoth in the cloud computing space blew away earnings estimates.

Analyst’s had been calling for $0.46 per share, but Salesforce put up $0.74 per share. Revenues also topped estimates coming in at $3.01 billion dollars compared to the expected to $2.95 billion dollars.

Their first quarterly revenue was up 25% from the year-ago period. Shares shot up quickly in the aftermarket once the earnings announcement was made public.

The shares which closed down $1.08 at $126.88 wound up closing at $132.80 at the 8 p.m. aftermarket session close. This will clearly put salesforce.com’s share price at all-time new high price levels.

Company and Analyst Comments

Marc Benioff, chairman and CEO, Salesforce, had this to say to investors:

“Salesforce delivered more than $3 billion in revenue in the first quarter, surpassing a $12 billion annual revenue run rate. Our relentless focus on customer success is yielding incredible results, including delivering nearly two billion AI predictions per day with Einstein.”

Bhavan Suri and Sarah Shizas, analysts at William Blair & Co. had this to say in a note published before the earnings were released:

“The company continues to land larger, multi-cloud deals, which should help support upside to current estimates.  Salesforce has gained traction in health care, financial services and government industries, they added.

Salesforce.com Charts

Salesforce.com Stock Chart

The above price chart shows Salesforce in the regular trading session on the left and the aftermarket session on the right. It is easy to see how shares quickly shot up, formed the base and a secondary rally before the market closed at 8 p.m.

Salesforce.com Stock Chart

The above price chart shows the daily action going back a number of months before shares created a new up trend. The green highlighted area in the upper right section of the chart shows where a likely opening price will be on Wednesday morning.

Company Profile

salesforce.com, inc. develops enterprise cloud computing solutions with a focus on customer relationship management. The company offers Sales Cloud to store data, monitor leads and progress, forecast opportunities, and gain insights through analytics and relationship intelligence, as well as deliver quotes, contracts, and invoices.

It also provides Service Cloud, which enables companies to deliver personalized customer service and support, as well as a field service solution that enables companies to connect agents, dispatchers, and mobile employees through a centralized platform, on which they can schedule and dispatch work, and track and manage jobs in real-time.

In addition, the company offers Marketing Cloud to plan, personalize, and optimize one-to-one customer marketing interactions; Commerce Cloud, which enables companies to enhance engagement, conversion, revenue, and loyalty from their customers; and Community Cloud that enables companies to create and manage branded digital destinations for customers, partners, and employees.

Further, it provides Quip collaboration platform, which combines documents, spreadsheets, apps, and chat with live CRM data; Salesforce Platform for building enterprise apps, as well as artificial intelligence (AI), no-code, low-code, and code development and integration services, including Trailhead, Einstein AI, Lightning, Internet of Things, Heroku, Analytics, and AppExchange; and various solutions for financial services, healthcare, and government.

Additionally, the company offers professional cloud services, such as consulting and implementation services; training services, including instructor-led and online courses; and support and adoption programs.

It provides its services through direct sales; and through consulting firms, systems integrators, and other partners. The company was founded in 1999 and is headquartered in San Francisco, California.-YahooFinance

IMAGE CREDIT

LEAVE A REPLY