Salesforce.com Inc. (CRM - Get Report) posted stronger-than-expected fourth quarter earnings Monday and boosted its revenue guidance for the current financial year, but near-term earnings guidance was modestly weaker than analysts had forecast, extending declines for the stock in after-hours trading.
Salesforce said earnings for the three months ending in January came in at 70 per share, more than double the 28 cents recorded over the same period last year and well ahead of the Street consensus forecast of 46 cents. Group revenues, Salesforce said, rose 26% from last year to 3.6 billion and again topped the consensus estimate of $3.56 billion. Subscription and support revenues were also 26% higher from last year at $3.38 billion.
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"Our relentless focus on delivering innovation and customer success has fueled our growth and solidified our leadership in the enterprise," said co CEO Keith Block. "This is just the beginning, which is why we're now targeting $26 to $28 billion in revenue by FY23 - organically doubling our revenue again in the next four years."
Salesforce shares were marked 3.3% lower in after-hours trading following the earnings release, after declining 3.66% during the main trading session, indicating an opening bell price on Tuesday of $153.31 each, a move that would trim the stock's three-month decline to around 10.7%.