Investing in Salesforce.com (CRM)? Don’t Miss Assessing Its International Revenue Trends
Have you evaluated the performance of Salesforce.com’s (CRM) international operations for the quarter ending April 2024? Given the extensive global presence of this customer-management software developer, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
Our review of CRM’s last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company’s total revenue for the quarter amounted to $9.13 billion, marking an increase of 10.7% from the year-ago quarter. We will next turn our attention to dissecting CRM’s international revenue to get a clearer picture of how significant its operations are outside its main base.
A Closer Look at CRM’s Revenue Streams Abroad
Europe accounted for 23.5% of the company’s total revenue during the quarter, translating to $2.15 billion. Revenues from this region represented a surprise of +8.81%, with Wall Street analysts collectively expecting $1.97 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $2.21 billion (23.7%) and $1.95 billion (23.7%) to the total revenue, respectively.
Asia Pacific generated $926 million in revenues for the company in the last quarter, constituting 10.1% of the total. This represented a surprise of +2.42% compared to the $904.13 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $906 million (9.8%), and in the year-ago quarter, it contributed $814 million (9.9%) to the total revenue.
Anticipated Revenues in Overseas Markets
Wall Street analysts expect Salesforce.com to report $9.24 billion in total revenue for the current fiscal quarter, indicating an increase of 7.4% from the year-ago quarter. Europe and Asia Pacific are expected to contribute 21.8% ($2.01 billion) and 10% ($926.22 million) to the total revenue, respectively.
Analysts expect the company to report a total annual revenue of $37.88 billion for the full year, marking an increase of 8.7% compared to last year. The expected revenue contributions from Europe and Asia Pacific are projected to be 21.7% ($8.21 billion) and 9.9% ($3.77 billion) of the total revenue, in that order.
Final Thoughts
Relying on global markets for revenues presents both prospects and challenges for Salesforce.com. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company’s future outlook.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It’s important to note, however, that a range of additional variables, like a company’s local market status, also play a crucial role in shaping these forecasts.
At Zacks, a company’s changing earnings outlook is given considerable attention due to its proven, strong influence on a stock’s price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
Currently, Salesforce.com holds a Zacks Rank #2 (Buy), signifying its potential to outperform the overall market’s performance in the forthcoming period. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Examining the Latest Trends in Salesforce.com’s Stock Value
The stock has witnessed a decline of 14.3% over the past month versus the Zacks S&P 500 composite’s an increase of 5.1%. In the same interval, the Zacks Computer and Technology sector, to which Salesforce.com belongs, has registered an increase of 7.6%. Over the past three months, the company’s shares saw a decrease of 23.2%, while the S&P 500 increased by 4.2%. In comparison, the sector experienced an increase of 5.7% during this timeframe.
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Salesforce Inc. (CRM) : Free Stock Analysis Report
