NEW YORK (TheStreet) -- Shares of Salesforce.com (CRM) are lower in mid-afternoon trading on Wednesday, as the cloud computing company prepares to release its fiscal 2017 second quarter earnings results after today's market close.
Analysts are looking for a year-over-year rise in earnings per share and revenue for the most recent quarter. The company has been forecast to report earnings of 22 cents per share on revenue of $2.02 billion. Salesforce posted earnings of 19 cents per share on revenue of $1.63 billion for the fiscal 2016 second quarter.
Salesforce is a company that is "widely loved" but there is some concern about the company's performance in this last quarter, Bloomberg News' Brain Womack reported on "Bloomberg Markets" on Wednesday.
Many will be watching how the company continues to grow and its effort to bring cloud-based services to many businesses.
"Growth has slowed a little bit, but I think there are still a lot of people that like this stock...of course what's important is how is the outlook...with this kind of company that's what people are looking for," Womack said.
Salesforce has been spending quite a bit this year, the company has announced or completed $3.5 billion in deals since February, BloombergTV's David Gura noted.
"You can see some trends already that [Salesforce] is looking beyond the core customer relation management stuff that they've been doing for a while," Womack added in response to Gura's question on where the company may be looking.
"Looking at maybe financial software that does more accounting. They could be doing things around billing, they could be doing things that's more about getting in users," Womack said.
Salesforce recently acquired a company called Quip, which is a word processing software company, and is casting its net in a much wider area. The company appears to be looking beyond what it has traditionally done, according to Womack.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate SALESFORCE.COM INC as a Hold with a ratings score of C. COM INC (CRM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
You can view the full analysis from the report here: CRM