Salesforce Soars 7% After Earnings Beat (CRM)
Salesforce (NYSE: CRM) is soaring after announcing impressive second quarter results and full-year estimates that are in-line with Wall Street.
The popular cloud computing company reported a Q2 EPS of $0.09. This was 18 percent lower than the EPS reported during the year-ago period, but it was still higher than Wall Street's estimate of $0.07.
Revenue came in at $957 million versus $938.81 million as sales were up 31 percent year-over-year.
Salesforce also announced that it expects to report a third-quarter EPS of $0.08 to 0.09 versus the Street estimate of $0.08. The company anticipates a full-year 2014 EPS of $0.32 to 0.34 versus $0.32.
"Salesforce.com continues to be the fastest growing software company of its size with year-over-year growth of more than 30% in revenue, deferred revenue, and operating cash flow," Marc Benioff, Chairman and CEO of Salesforce, said in a company release. "I'm delighted to announce that just four years after delivering our first $1 billion revenue year, we are now poised to deliver our first $1 billion revenue quarter in the third quarter of fiscal 2014."
Leading up to this report, some analysts approached Salesforce's outlook with caution.
In July, Wedbush lowered its Price Target from $42 to $40, citing long-term issues.
This week Bernstein Research reiterated its Underperform rating due to the company's anticipated slow growth.
Other analysts have been more optimistic.
Shortly after the hire, Salesforce and Oracle announced a "comprehensive nine-year partnership encompassing all three tiers of cloud computing: Applications, Platform and Infrastructure."
A few weeks later in July, Salesforce completed its acquisition of ExactTarget, a successful cloud marketing firm. The acquisition brought several big clients -- including Nike (NYSE: NKE), The Gap (NYSE: GPS) and Coca-Cola (NYSE: KO) -- to Salesforce.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.