Salesforce Expected To Deliver Across The Board Beat In Q4

“Based on our due diligence, we were pleased with the traction within enterprises and heard solid large multicloud deal activity across federal government, financial services, and healthcare,” analyst Bhavan Suri wrote in a note.

Suri noted that salesforce’s average deal size continued to increase throughout the quarter and expects the company closed a healthy amount of seven-figure deals.

Rating And Expectations

Suri, who has an Outperform rating on the shares, sees fourth-quarter revenue at $2.272 billion versus Street’s $2.275 billion estimate. The analyst predicts the company to post results $20 million-plus ahead of management’s guidance of $2.267 billion–$2.277 billion.

In addition, the analyst forecast EPS at $0.24, and anticipates non-GAAP EPS to be a penny above the Street mean of $0.25. Suri also estimates billings to grow 24.5 percent, slightly better than consensus estimate of 24.3 percent and “nicely above the high end of guidance of 24.8 percent growth.”

Related Link: Microsoft May Be Gaining Traction Against Salesforce In The Cloud Space

Looking Even Further Ahead

Moreover, Suri expects salesforce to raise its fiscal 2018 revenue guidance by $25 million. The company projects revenue at $10.1 billion–$10.15 billion, in line with the Street mean of $10.156 billion and his estimate of $10.116 billion.

Also, the analyst expects fiscal 2018 EPS of $1.24 versus Street estimate of $1.28. The company has not yet provided non-GAAP EPS guidance.

“We expect management to issue initial non-GAAP EPS guidance that is a couple pennies ahead of the Street’s estimate,” Suri added.

At last check, shares of salesforce were down 0.05 percent to $82.14.