Salesforce Stock Craters 16% on Revenue Miss, Downbeat Forecast — TradingView News

Software giant couldn’t live up to expectations with revenue growth of 11% falling short of estimates for the first time since 2006.

• Salesforce stock CRM nosedived 16% in after-hours trading following the company’s latest quarterly report. For the fiscal trimester, which ended April 30, the business software provider brought in revenue of $9.13 billion. While the figure was 11% higher year-over-year, it undershot analysts’ calls for $9.17 billion in sales. It was the first revenue miss in 18 years. Earnings per share topped estimates with $2.44 adjusted, against $2.38 adjusted.
• What knocked optimism even more was Salesforce’s outlook for the current quarter. It now expects $2.34 to $2.36 in adjusted profit per share on $9.2 billion to $9.25 billion in revenue. Both estimates trailed consensus views of $2.40 in adjusted earnings per share on $9.37 billion in sales. Chief executive Marc Benioff said that free cash flow grew 43% to $6.1 billion. That is after the company repurchased $2.2 billion worth of stock and paid $400 million in dividends.
• Ahead of Thursday’s opening bell the stock is up just about 6% on the year. Once it hits regular trading hours, shares will absorb the steep fall and turn negative for the year by about 11%. Fun fact: the last time Salesforce dropped by such magnitude in a single day was way back in 2008 when the financial crisis swept all corners of the stock market.