Canaccord Comments on Salesforce.com Revenues and EPS

Canaccord Genuity has published a research report on Salesforce.com

after the company reported upside revenues believes the stock's valuation is an attractive entry point. In the report, Canaccord writes, "The company reported revenues, EPS and free cash flow of $584 million, $0.34 and $94 million, which were respectively $12 million, $0.03 and $21 million ahead of consensus. Calculated billings (revenue plus change in deferred) came in at $567 million, which is 29% year-over-year growth and compares to the Street's expectation of 33% growth. Management noted that deferred revenues can vary based on fluctuations in invoicing duration and timing, changes in currency, and differences in accounting for acquired revenues (i.e., monthly billing). Canaccord Genuity Technology Analyst Richard Davis notes that the dip in deferred revenue growth was rather small, as year-over-year currencyadjusted growth for this line item has been 33%, 33%, and 31% this quarter during the first nine months of F12. The mid-point of management's preliminary F13 revenue outlook implies top-line growth for next year of roughly 28% (compared to the Street's 24% estimate)." Salesforce.com is currently trading down $3.89 from Friday's $113.52 closing price.