Salesforce (CRM, $158.55) posts lower-than-expected earnings guidance for fiscal Q1, despite beating fiscal Q4 earnings estimates
Salesforce beat the fiscal fourth quarter earnings estimates, but fell shy of expectations on guidance for the next quarter.
At 70 cents per share for the three months ending January, the cloud computing/software company’s adjusted earnings overshot analysts’ expectation of 55 cents per share (based on Refinitiv data). The earnings -per-share was more than double the year-ago quarter’s figure.
Revenue for the quarter increased +26% from the year-ago quarter to touch $3.60 billion, exceeding analysts’ estimate of $3.56 billion (based on Refinitiv data). Subscription and support revenues also climbed +26% year-over-year to $3.38 billion in the quarter.
Despite the better-than-expected results for the latest quarter, what probably led to Salesforce shares slumping during Monday’s extended trading was its forecast of 60 cents to 61 cents earnings-per-share on a revenue range of $3.67 billion to $3.68 for the fiscal first quarter – figures that are lower than the 63 cents earnings per share on $3.70 billion revenue that analysts had anticipated ((based on Refinitiv data).
Nevertheless, the company’s guidance for the full fiscal year 2020 is in line with analysts’ expectations. It projects adjusted earnings of $2.74 to $2.76 per share, while analysts’ expect $2.75 per share for the year. Revenue forecast of $15.95 billion to $16.05 billion is a range covering analysts’ prediction of $15.99 billion.
Salesforce stock was down -3.3% in after-hours trading Monday, following the earnings release. It had already dropped -3.66% during the main trading session that day.
CRM in downward trend: price dove below 50-day moving average on July 09, 2025
CRM moved below its 50-day moving average on July 09, 2025 date and that indicates a change from an upward trend to a downward trend. In of 34 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 63 cases where CRM's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on July 09, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on CRM as a result. In of 84 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 10-day moving average for CRM crossed bearishly below the 50-day moving average on June 11, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for CRM just turned positive on June 24, 2025. Looking at past instances where CRM's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CRM advanced for three days, in of 343 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (31.479). P/E Ratio (71.967) is within average values for comparable stocks, (164.144). Projected Growth (PEG Ratio) (1.620) is also within normal values, averaging (2.732). Dividend Yield (0.001) settles around the average of (0.030) among similar stocks. P/S Ratio (8.532) is also within normal values, averaging (62.041).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. CRM’s price grows at a lower 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 well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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.
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.
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a developer of on-demand customer relationship management software technology
Industry PackagedSoftware
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