CRM Stock Gains 13% on Salesforce Earnings

  • Salesforce (NYSE:CRM) recently reported Q1 earnings
  • The company beat on earnings and revenue but slightly lowered revenue guidance
  • Salesforce executives also provided positive comments
A hand with pink painted fingernails holds a Salesforce (CRM) sticker.
Source: Bjorn Bakstad / Shutterstock.com

Salesforce (NYSE:CRM) stock is jumping 13% after the company’s fiscal first-quarter results surpassed analysts’ average estimates. The company, which develops customer relationship management tools, also raised its full-year earnings guidance. However, it slightly reduced its 2022 revenue outlook.

CRM Stock Up Following Q1 Results

Salesforce reported Q1 earnings per share (EPS) of 98 cents, excluding certain items, versus analysts’ average estimate of 94 cents. The company’s sales jumped 24% year-over-year to $7.41 billion, slightly above the mean outlook.

On the guidance front, Salesforce slightly trimmed its full-year, top-line outlook to between $31.7 million and $31.8 billion, from between $32 billion and $32.1 billion.

The company’s co-CEO, Marc Benioff, stated that the guidance reduction was caused by currency fluctuations. However, the company increased its fiscal 2023 EPS guidance, excluding certain items, to $4.74-$4.76 from $4.62 -$4.64. And despite the high inflation rate, the software maker expects its FY23 operating margin, excluding certain items, to be roughly 20.4%, versus its previous guidance of roughly 20%.

Upbeat Comments

Benioff reported that the company was benefiting from “a whirlwind” of deals. The company’s other co-CEO, Bret Taylor, said, “We see strong demand across our clouds and industry. Our products are more relevant than ever. The digital transformation trends that accelerated during the pandemic are moving full steam ahead.”

Despite today’s rally, CRM stock has still tumbled nearly 30% so far this year.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer.


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