Increasing Sales By Force

Salesforce has become a target of activist investors after falling 60% from last year’s highs. However, today’s earnings and revenue beat indicate that the company may be turning a corner. 🤔

The software giant’s adjusted earnings per share of $1.68 and revenues of $8.38 billion beat the expected $1.36 and $7.99 billion. 💪

Last quarter the company unveiled a restructuring strategy, which led to $828 million in related costs. It laid off over 7,000 employees as part of its cost-cutting efforts, leaving many questioning its “family-like” culture. Ultimately, the company has had to refocus on profitability, with revenue growth slowing to just 14% YoY. ✂️

For the current fiscal quarter, it expects adjusted earnings per share of $1.60 to $1.61 and revenues of $8.16 to $8.18 billion. That topped analyst estimates for $1.32 per share and $8.05 billion in revenues. Its full-year guidance also topped estimates.

Additionally, the company is doubling its buyback program from $10 billion to $20 billion. 💰

We’ll have to wait and see whether these results can stave off Third Point, Elliott Management, and Starboard Value activist efforts. But for now, investors seem happy with the news, as $CRM shares are up 15% after hours. 📈

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Walmart Wins With Groceries

America’s largest retailer did what Home Depot and Target couldn’t…beat Wall Street’s expectations.

Walmart reported adjusted earnings per share (EPS) of $1.47 on revenues of $152.3 billion. That topped the expected $1.32 and $148.76 billion. 💪

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Retailer Gap’s Big Gap

Mall retailer Gap is popping after hours following a narrower-than-anticipated loss. 🤏

The company’s adjusted earnings per share were $0.01, driven by drastic cost-cutting efforts over the last year. Heavy discounting to clear inventory and high air freight expenses had weighed on margins last year but are abating. As a result, gross margins of 37.1% were up 5.6% YoY and 3.5% QoQ.

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A Retailer Recap

Investors continue to watch retailer earnings for a read on consumers’ health. We heard from several key companies today, so let’s take a look. 👇

First up is BJ’s Wholesale Club Holdings, which matched earnings and missed revenue expectations. 

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Dingdong Delivers Poor Results

Chinese fresh grocery e-commerce company Dingdong delivered worse-than-expected results that sent shares tumbling. 🔻

Non-GAAP earnings per American depository share of $0.00 aligned with expectations. However, revenues of $727.7 million fell 15.3% YoY and missed consensus estimates by $93.19 million. Gross merchandise value (GMV) of $793.8 million fell 6.8% YoY. 🛒

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