Salesforce.com (NYSE: CRM) has confirmed that it will release its earnings results for the quarter ending September 30, 2021, on November 30, 2021.
What to look for
Earnings: Stockearning’s Estimated EPS for the current quarter under review is expected to be $0.92. Consensus analysts’ estimates are for EPS of $0.91 per share, indicating a negative YoY growth rate of 47.1%. Analysts expect the company to post full-year EPS of $4.4 per share, and for the next financial year, they expect EPS of $4.59. In the last quarter, the company topped estimates and reported EPS of $1.48. Historical EPS Performance shows the company has topped estimates in ten (83%) of the past 12 quarters and missed twice (16%).
Revenue: The company reported revenue of $6.34 billion, topping estimates of $6.25 billion, representing a 23.1% YoY increase. When the company released Q2 2021, results offered revenue guidance for the third quarter of $6.78 billion to $6.79 billion. For the full year, the company expects revenue of between $26.2 billion and $26.3 billion and adjusted earnings per share of $4.36 to $4.38 billion.
Stock movement: Since the last earnings release, Salesforce stock has gained 15.5%. Salesforce stock has been UP 28 times out of the last 46 quarters after releasing earnings. So, the historical price reaction suggests a 60% probability of the share price going UP once Salesforce releases its earnings. According to the Stockearning algorithm, the predicted first-day move is 5%, while the predicted move on the seventh day is 6%.
What analysts are saying
Credit Suisse analyst Phil Winslow commenced coverage on Salesforce with a "Buy" rating and a price target of $375. The analyst believes the company with a leading horizontal suite of CRM apps and growing vertical tech stack is one in his coverage that is most leveraged in the B2C and B2B segments’ Digital Transformation acceleration.
Mizuho analyst Gregg Moskowitz raised his price target in the stock from $320 to $360 and maintained a "Buy" rating on the shares. According to the analyst, software valuation has "continued their ascent in recent weeks" this is the price target upgrade to reflect the appreciation I comp multiples.
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