Salesforce.com Stock Slides on Strong Earnings, Weak Outlook

Salesforce.com (NYSE:CRM) reported its latest quarterly earnings results late in the day Wednesday, which sent shares sliding after hours over a weak quarterly outlook for the current period.

salesforce.comThe cloud computing company said that for its third quarter of fiscal 2018, it sees its adjusted earnings as being in the range of 49 cents to 50 cents per share. Analysts are calling for the company’s third-quarter revenue to reach 53 cents per share, according to data compiled by FactSet.

Salesforce.com also sees its third-quarter revenue as being around $3.36 billion to $3.37 billion, while analysts see this figure as being $3.35 billion, per FactSet. For the fiscal year, the company sees its adjusted earnings as being between $2.50 and $2.52 per share, while revenue is slated to be between $13.13 billion to $13.18 billion.

The Wall Street consensus estimate is calling for full-year adjusted earnings of $2.31 per share and revenue of $3.35 billion, according to FactSet. For its second quarter of the fiscal year, Salesforce.com posted net income of $299 million, or 39 cents per share, ahead of the $46 million, or 6 cents per share from the year-ago period.

On an adjusted basis, the company brought in earnings of 71 cents per share, ahead of the 47 cents per share that the FactSet guidance called for. Revenue rose to $3.28 billion from $2.58 billion, while also coming in ahead of the Wall Street forecast of $3.23 billion, per FactSet.

CRM stock was up about 1.2% during regular trading hours Wednesday in anticipation of the company’s latest quarterly earnings showing, which sent shares declining 1.7% after the bell due to the company’s weak guidance.


Article printed from InvestorPlace Media, https://investorplace.com/2018/08/salesforce-com-crm-2/.

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