Shares of Salesforce.com Inc. (CRM) rose in after-hours trading Tuesday after the software services provider beat analysts' estimates and offered upbeat revenue guidance.
The stock gained 8% to $137.62 in late action, after rising 1% during the regular session.
Salesforce reported third-quarter non-GAAP diluted earnings per share of 61 cents on revenue of $3.39 billion. The company had been expected to report EPS of 50 cents on revenue of $3.37 billion, based on a FactSet survey of 37 analysts.
Salesforce initiated fourth-quarter revenue guidance of $3.55 billion to $3.56 billion. The company raised its fiscal 2019 revenue guidance to $13.23 billion to $13.24 billion. And it initiated fiscal year 2020 revenue guidance of $16 billion.
The company said remaining performance obligation, which represents future revenue under contract but not yet recognized, grew 34% year over year to $21.2 billion.
"Salesforce remains integral to companies across sectors and industries and this could potentially be the release we needed to get the Nasdaq moving the right way again," said Zev Fima, ActionAlertsPLUS.com research analyst.
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