In what’s been a hit-or-miss earnings season for many companies, Salesforce appears to have made it home safely. 👏
The company’s adjusted earnings per share beat the $0.94 expected by analysts, coming in at $0.98. Revenues also beat expectations at $7.41 vs. $7.38 billion.
The company lowered its revenue guidance, but boosted profit guidance.
Its updated full-year guidance is now:
- $4.74 to $4.76 EPS (vs $4.62 to $4.64 previously expected)
- $31.7 to $31.8 billion in revenue (vs $32.0 to $32.1 billion previously expected)
So far, investors are cheering the news, with the $CRM up 7.53% after hours. 📈
Salesforce has not been exempt from the carnage in growth stocks over the last year. Its shares have fallen roughly 50% since their highs last November and are now trading back at levels they first saw in July 2018, when the company had only $12 billion in revenue.
With revenues more than doubling over the period, investors may be asking about Salesforce (and others) how much cheaper can the shares get before they reach bargain territory?
We’ll have to see if today’s news is enough to get people interested in $CRM, or if even lower prices are needed.
Join the convo on the $CRM stream. 💭