Salesforce.com Earnings Preview: What Three Analysts Are Saying

Salesforce.com CRM is set to announce its third quarter 2014 earnings on Modnay after the market close. Earnings are typically released a few minutes after 4:00PM ET, with a conference call scheduled for 5:00PM. The EPS consensus is $0.09 with revenue of $1.05 billion. Piper Jaffray: Industry checks reveal staggering demand Analysts at Piper Jaffray PJC are optimistic of the company's earning potentials following an interview with 11 key contacts within the company's ecosystem. Based on the industry contacts, the analysts concluded that:

1) Strong momentum continues for salesforce.com with “a ton of business out there."

2) The newly appointed President and Vice Chairman Keith Block is a positive addition to the company. Block has been “removing the inefficiencies” and is “starting to shine the light on some accounts that should be larger than they are.”

3) 81 percent of the respondents mentioned Force.com being brought to the forefront of conversations and ascending into a critical development platform.

4) One contact noted a 9-figure deal is in the works, while other contacts revealed deals in the $20 million to $30 million range are also in the works.

JP Morgan: An in-line quarter won't be enough Analysts at JP Morgan JPM believe that expectations going in to the quarter are quite low, with consensus implying a low double-digit decline in organic, constant-currency, new, annualized subscription billings. The company will need to surpass estimates to appease investors. Shares have risen around 31 percent since reporting a relatively strong July quarter and a strong earnings will be needed to continue the shares momentum. Deutsche Bank: Expectation is for a modest beat on estimates Analysts at Deutsche Bank DB are expecting a modest beat given a conservative guidance and minimal foreign exchange impact. The analysts noted an increase in hiring activity, as this will be the first full quarter of ExactTarget's contribution. The ExactTarget portfolio “makes CRM's Marketing Cloud much more credible for large enterprises and expands the company's TAM (total addressable market) as marketing automation becomes a significant area of spend.”