Here Is What To Expect
Customer relationship management software maker Salesforce (NYSE:CRM) will be announcing earnings results tomorrow after market close. Here’s what to look for.
Salesforce met analysts’ revenue expectations last quarter, reporting revenues of $9.29 billion, up 10.8% year on year. It was a weaker quarter for the company, with management forecasting growth to slow and underwhelming revenue guidance for the next quarter.
Is Salesforce a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Salesforce’s revenue to grow 10.9% year on year to $9.15 billion, in line with the 11.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.37 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Salesforce has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1% on average.
Looking at Salesforce’s peers in the sales software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. HubSpot delivered year-on-year revenue growth of 23.1%, beating analysts’ expectations by 3.2%, and Freshworks reported revenues up 19.9%, in line with consensus estimates. HubSpot’s stock price was unchanged after the results, while Freshworks was down 19.6%.
Read our full analysis of HubSpot’s results here and Freshworks’s results here.
Investors in the sales software segment have had steady hands going into earnings, with share prices flat over the last month. Salesforce’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $335.5 (compared to the current share price of $273.2).
Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
