NEW YORK (TheStreet) -- Shares of Salesforce.com (CRM) - Get Free Report were lower in mid-afternoon trading on Wednesday as Jefferies said it expects the company to report "fine" second quarter results this afternoon, but that there may be some softness as well.
Salesforce.com is expected to report fiscal 2016 second-quarter results after today's market close.
Wall Street is looking for earnings of 22 cents per share and $2.02 billion in revenue. For the 2015 first quarter, the San Francisco-based cloud provider earned 19 cents per share and $1.63 billion in revenue.
Jefferies said there may be some mid-market softness in the company's results.
"The reason for the overall slowdown is unclear, with the 'macro' term bounced around, since there may have been an extra level of scrutiny for deals," the firm continued in their analyst note, according to Barron's. "We speculate if CRM is seeing increased competition or market saturation in sales force automation, the lion's share of its business."
The firm added that Salesforce.com could also be getting distracted by "extraneous activities," such as acquisitions.
Jefferies maintained its "hold" rating and $80 price target on shares of the company.
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:
The team rates Salesforce.com as a Hold with a ratings score of C. COM INC (CRM) a HOLD. The primary factors that have impacted the 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, the team finds that the company's return on equity has been disappointing.
You can view the full analysis from the report here: