Cloud software company Salesforce.com reported its third quarter earnings that surpassed analysts’ expectations. However, the company’s guidance was below expectations.
Salesforce.com’s GAAP earnings of $1.15 per share was a major improvement from the year-ago quarter’s loss of -12 cents per share a year ago. Adjusted earnings came in at $1.74 a share, compared to the 75 cents per share forecasted by analysts surveyed by Factset.
Revenue surged +20% year-over-year to $5.42 billion, beating the $5.25 billion expected by analysts polled by FactSet.
The quarter’s subscription and support revenues rose +20% year-over-year.
For the fourth quarter, Salesforce.com expects earnings in the range of 73 cents to 74 cents, and revenue range of $5.67 billion to $5.68 billion. Analysts polled by FactSet estimated earnings of 86 cents a share and revenue of $5.51 billion.
Looking further ahead, Salesforce projects full-year earnings to range between $4.63 and $4.63. It expects revenue in the range of $21.10 billion to $21.11 billion. Those are lower expectations compared to the Street forecasts of earnings of $3.75 per share on revenue of $20.78 billion.
CRM broke above its upper Bollinger Band on February 29, 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 A.I.dvisor looked at 46 similar instances where the stock broke above the upper band. In of the 46 cases the stock fell afterwards. This puts the odds of success at .
The 10-day RSI Indicator for CRM moved out of overbought territory on March 05, 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 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 65 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 March 26, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on CRM as a result. In of 92 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 March 07, 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CRM advanced for three days, in of 335 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 278 cases where CRM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 89, placing this stock slightly better than average.
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 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 (4.902) is normal, around the industry mean (28.767). P/E Ratio (71.757) is within average values for comparable stocks, (148.690). Projected Growth (PEG Ratio) (1.616) is also within normal values, averaging (2.798). Dividend Yield (0.001) settles around the average of (0.085) among similar stocks. P/S Ratio (8.511) is also within normal values, averaging (77.911).
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.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of on-demand customer relationship management software technology
Industry PackagedSoftware