“Salesforce accelerated (second-quarter) revenue growth to 24% (year-over-year) and 28% in constant currency, despite facing the most hard revenue growth comparison of the year”. The company is expected to report revenue of $1.6 billion. Subscription and support revenues were $1.52 billion, an increase of 23% year-over-year. The highest broker full year earnings per share estimate is $0.24 while the lowest estimate sits at $0.1. On average, equities research analysts forecast that salesforce.com, inc. will post $0.71 earnings per share for the current year.
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Salesforce management guided for revenue of between $1.69 billion and $1.7 billion for the third fiscal quarter.
Unbilled deferred revenue, a closely watched number that indicates the amount of business booked by Salesforce, but not yet recognized, was $6.2 billion compared with $5 billion a year earlier. JMP Securities reissued a “market perform” rating and issued a $75.00 target price on shares of salesforce.com, inc.in a report on Saturday, May 9th.
Marc Benioff, chairman and chief executive at Salesforce, said the results put Salesforce in a good position to achieve its $10bn revenue ambitions.
Shares of the San Francisco-based leader in cloud-based customer relationship management software were up 14% in 2015 through yesterday’s close, outperforming the S&P 500 by a full 15 percentage points.
Windstream Holdings, Inc. (NASDAQ:WIN) decreased -3.38% closed at $6.29 and traded with total volume of 4.63 million shares, while the average trading remained 4.56 million shares. EPS is ($0.26). The name has a market cap of $47.61 billion and a median Wall Street price target of $82.00 with a high target of $95.00.
Buoyed by the splendid second-quarter results, the company raised the fiscal 2016 outlook.
Excluding items, Salesforce earned 19 cents per share, beating the average analyst estimate of 17 cents, according to Thomson Reuters I/B/E/S. The sales figure snapped a three-quarter string of slowing growth in sales. It was a great win over Oracle and they chose Salesforce for our ability to deliver customer service on a flexible platform that would allow them to innovate with scale and speed. Overall, the company’s diverse cloud offerings and considerable spending on digital marketing remain the catalysts.
While much of those gains were driven by speculation that CRM could be bought out by a larger rival – Microsoft (MSFT), Oracle (ORCL) and IBM (IBM) were all floated as potential acquirers – hopes for a deal have since waned.
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Salesforce has a Zacks Rank #3 (Hold).
