A Look at Estimates Beyond Revenue and EPS
Wall Street analysts forecast that Salesforce.com (CRM) will report quarterly earnings of $2.38 per share in its upcoming release, pointing to a year-over-year increase of 40.8%. It is anticipated that revenues will amount to $9.14 billion, exhibiting an increase of 10.8% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts’ projections for some of the company’s key metrics often helps gain a deeper insight.
Bearing this in mind, let’s now explore the average estimates of specific Salesforce.com metrics that are commonly monitored and projected by Wall Street analysts.
Analysts expect ‘Revenue- Professional services and other’ to come in at $575.05 million. The estimate indicates a year-over-year change of -5%.
It is projected by analysts that the ‘Revenue- Subscription and support’ will reach $8.56 billion. The estimate points to a change of +12% from the year-ago quarter.
According to the collective judgment of analysts, ‘Revenue- Subscription and support- Service’ should come in at $2.20 billion. The estimate points to a change of +11.9% from the year-ago quarter.
The consensus estimate for ‘Revenue- Subscription and support- Marketing and Commerce’ stands at $1.27 billion. The estimate points to a change of +8.6% from the year-ago quarter.
The consensus among analysts is that ‘Revenue- Subscription and support- Platform and Other’ will reach $1.75 billion. The estimate suggests a change of +11.6% year over year.
The collective assessment of analysts points to an estimated ‘Revenue- Subscription and support- Data’ of $1.34 billion. The estimate indicates a year-over-year change of +18.6%.
Analysts predict that the ‘Revenue- Subscription and support- Sales’ will reach $2.00 billion. The estimate indicates a year-over-year change of +10.4%.
The average prediction of analysts places ‘Geographic Revenue- Americas’ at $6.22 billion. The estimate indicates a change of +13.6% from the prior-year quarter.
Based on the collective assessment of analysts, ‘Geographic Revenue- Asia Pacific’ should arrive at $904.13 million. The estimate suggests a change of +11.1% year over year.
Analysts forecast ‘Geographic Revenue- Europe’ to reach $1.97 billion. The estimate indicates a year-over-year change of +1%.
Analysts’ assessment points toward ‘Full time equivalent headcount’ reaching 73,775. The estimate is in contrast to the year-ago figure of 72,970.
View all Key Company Metrics for Salesforce.com here>>>
Shares of Salesforce.com have demonstrated returns of +2.8% over the past month compared to the Zacks S&P 500 composite’s +6.1% change. With a Zacks Rank #3 (Hold), CRM is expected to mirror the overall market performance in the near future. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Salesforce Inc. (CRM) : Free Stock Analysis Report
