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All The Analyst Ratings And Price Targets Ahead Of Salesforce.com's Q3 Earnings

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All The Analyst Ratings And Price Targets Ahead Of Salesforce.com's Q3 Earnings

Salesforce.com, inc. (NYSE: CRM) is expected to release its third-quarter results on Thursday, November 17, 2016, after the close of the market.

Wall Street analysts, on average, expect the company to earn $0.21 a share, flat with last year. Revenues are expected to rise 23.7 percent to $2.12 billion.

Salesforce projects third-quarter GAAP loss per share at ($0.05) to ($0.04), while non-GAAP EPS is estimated at $0.20 to $0.21. The company sees revenue to be approximately $2.11 billion to $2.12 billion, an increase of 23 percent to 24 percent year-over-year.

A Look Back

In the past four quarters, salesforce’s earnings have managed to top Street estimates thrice, while analysts have trimmed their estimates by $0.03 over the past 90 days.

For the second quarter of 2016, salesforce’s reported EPS of $0.24, which came in above Street view by $0.02, resulting in a positive surprise of 9.10 percent. Revenue climbed 25 percent to $2.04 billion.

Salesforce, the leading customer relationship management software maker, is a key beneficiary of the market’s rapid shift to cloud. The company gets majority of its revenue from subscription and support. In the second quarter, subscription and support revenues grew 24 percent to $1.89 billion.

What Investors Will Look For

Investors will be monitoring key metrics such as deferred revenue and unbilled deferred revenue. The company generated deferred revenue of $3.82 billion, up 26 percent year-over-year, in the second quarter, and unbilled deferred revenue rose 29 percent to $8.0 billion.

Also, the focus will be centered on the company’s fourth quarter guidance and whether there is any updating to its full-year FY 2017 forecast. In late August, salesforce raised its full-year revenue view to a range of $8.275 billion to $8.325 billion, an increase of 24 percent to 25 percent year-over-year. The company reaffirmed its non-GAAP EPS guidance of $0.93 to $0.95.

The market will also be looking for any color on the M&A front, as the company is rumored to buy Twitter Inc (NYSE: TWTR) and already lost the race to Microsoft Corporation (NASDAQ: MSFT) to acquire LinkedIn Corp (NYSE: LNKD).

Voices From The Street

Following is list of all the analyst ratings and price target changes of salesforce ahead of its third-quarter earnings print:

  • Barclays: Overweight rating, price target of $89.
  • Cowen & Co.: Outperform.
  • Citigroup: Buy, $89.
  • D.A. Davidson: Neutral, $80.
  • Morgan Stanley: Overweight, $107.
  • OTR Global: Mixed.
  • Rosenblatt: Buy.
  • Wunderlich: Buy, $101.

At last check, salesforce shares were trading down 1.04 percent at $73.26.

Latest Ratings for CRM

DateFirmActionFromTo
Nov 2020KeyBancInitiates Coverage OnOverweight
Nov 2020SMBC NikkoInitiates Coverage OnOutperform
Nov 2020Morgan StanleyDowngradesOverweightEqual-Weight

View More Analyst Ratings for CRM
View the Latest Analyst Ratings

 

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StockFirmActionPT
OCXBTIGInitiates Coverage On5.0
GCMGWilliam BlairInitiates Coverage On
PDCraig-HallumInitiates Coverage On41.0
CAPLWells FargoDowngrades
MMPWells FargoDowngrades
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