Salesforce (CRM, $153.58) beats fiscal Q2 earnings & sales expectations; raises full-year guidance
Salesforce reported quarterly revenue and earnings that surpassed analysts’ expectations. The cloud software company also boosted its full-year outlook.
The company’s fiscal second quarter adjusted earnings came in at 66 cents per share, compared to 47 cents per share expected by analysts polled by Refinitiv.
Revenue increased +22% from the year ago quarter to reach $4 billion, which is higher than analysts’ estimate of $3.95 billion (according to Refinitiv). Revenue from Sales Cloud, the company’s biggest product, grew +13%, and that from Service Cloud, the second-largest division, surged +22%.
In addition to strong organic growth, Salesforce also seems to be potentially on a path of further expansion as it acquired, earlier this month, data visualization software company Tableau in a $15.3 billion deal.
Looking ahead, Salesforce raised its revenue projection for the year to between $16.75 billion and $16.9 billion, up from its previous guidance of up to $16.25 billion.
For the fiscal third quarter, the company expects revenue of $4.44 billion to $4.45 billion, i.e. a +31% year-over-year growth.
CRM sees its Stochastic Oscillator recovers from oversold territory
On December 24, 2024, the Stochastic Oscillator for CRM moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 53 instances where the indicator left the oversold zone. In of the 53 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CRM advanced for three days, in of 346 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 299 cases where CRM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for CRM moved out of overbought territory on December 09, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 similar instances where the indicator moved out of overbought territory. In of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on December 18, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on CRM as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for CRM turned negative on December 13, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CRM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CRM broke above its upper Bollinger Band on December 04, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. CRM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.916) is normal, around the industry mean (31.078). P/E Ratio (71.967) is within average values for comparable stocks, (160.694). Projected Growth (PEG Ratio) (1.620) is also within normal values, averaging (2.755). Dividend Yield (0.001) settles around the average of (0.084) among similar stocks. P/S Ratio (8.532) is also within normal values, averaging (58.228).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a developer of on-demand customer relationship management software technology
Industry PackagedSoftware