Benioff said Salesforce once again had a terrific quarter, despite Hurricane Sandy shutting much of the Northeast and the final cliff looming ever larger. He said this quarter was the company's fifth straight with over $100 million in operating cash flow.
Europe was also strong for Salesforce since times of distress often mean that companies forego buying hardware and turn to the cloud for rapid, cost-effective IT solutions. The cloud grows faster when things are bad, he noted. Benioff said Salesforce is focused on revenue and market share and not necessarily on making a profit.
When asked about the day's news regarding Hewlett-Packard's acquisition gone bad, Benioff said Salesforce has done over 2,000 acquisitions in recent years, mostly to acquire next-generation technology or forward-thinking entrepreneurs. He said Salesforce is working with HP to help its sales and service teams collaborate and innovate.
Do Your Homework
Don't trade on the headlines, Cramer told viewers, do the homework. Headlines can be misleading, as was the case with Urban Outfitters (URBN), which was widely reported as delivering an earnings miss of only one cent a share on light revenue and with only a 1% increase in same store sales.Under these headline numbers, Urban Outfitters actually did quite well, and is poised to have a great holiday quarter. Cramer said the 1% increase in same-store sales was actually a 7% increase, but that number was dinged due to merchandise ordered online that was returned at stores. In addition to strong sales both in-store and online, Cramer noted that the company's margins are up, inventories are lean and management expects the fourth quarter to be "less promotional," which is code for selling more items at full price. Cramer also noted his unofficial "congratulations quotient," which measures analyst sentiment by counting the number of "congratulations" management receives on their conference call. Of 19 analysts asking questions, a full 11 of them offered such kudos. Urban Outfitters struggled last year after the company had the wrong merchandise for its customers, but Cramer said now that a solid management team is back in place, Urban Outfitter's business is once again on fire. Shares trade at 19 times earnings with a 17% growth rate.
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