Salesforce.com's Quarter Was 'As Good As The Company Can Report'

served up better-than-expected results in the second quarter, reporting a Q2 EPS $0.19 versus the Street estimate of $0.18 and revenue of $1.63 billion versus $1.6 billion. "This is about as good as the company can report,"

, CIO of Quantum Trading Strategies and author of The TechStrat Report, told Benzinga. Udall spoke negatively about the "trading machine under Wall Street" that has "pretty much sold off" every stock after earnings. "Maybe there's enough of a drop in the market that good results will respond better," he said, referring to the uptick in Salesforce. The stock closed down 5.83 percent Thursday but came back strong after hours, rising more than 4 percent by 6:00 p.m. ET. "They never beat by much," said Udall. "The whole business is subscription-based. The contracts are long-term. They're not signing a lot of upfront deals. Salesforce typically doesn't beat by a lot. They don't usually guide higher. A lot of time they'll beat by a penny or two and guide in-line." Udall thinks the full-year guide is "probably the best news" for Salesforce. The company said it expects to report an FY16 EPS of $0.70 to $0.72 versus the Street estimate of $0.71. Revenue is expected to be between $6.6 billion and $6.625 billion versus $6.55 billion. "Their numbers definitely would have been higher net of the currency impact," Udall added. "The fact that they guided up (net of currency headwinds) is pretty strong."

Global Equities Research analyst Trip Chowdhry doesn't think Salesforce is moving fast enough. "Seventy percent of the business is very strong," said Chowdhry, who pointed to the firm's sales and service automation businesses. "These two products are extremely strong. The remaining part of the business is a struggle." Chowdhry said that with the multiples that Salesforce is trading at, "beating and guiding up to those numbers is probably not sufficient." He said it's difficult to justify the stock price when

AWS is experiencing 80 percent growth year-over-year. "The cloud business for Oracle is up more than 40 percent," Chowdhry added. "The cloud business for IBM is up more than 100 percent year-over-year." By comparison, Salesforce's growth is at

. Chowdhry is not sure how the company could go higher, but said it would need to experience year-over-year growth rates between 40 and 50 percent in order to compete. He argued that the benchmark should be to reach Amazon's level of growth. "I think they are executing well, but not good enough compared to IBM, Amazon AWS and Oracle," Chowdhry concluded. Disclosure: