Why salesforce.com (CRM) Stock Is Up After-Hours Tuesday

NEW YORK (TheStreet) -- Salesforce.com (CRM) was gaining 2.5% to $54.19 in after-hours trading Tuesday after beating analysts' estimates for earnings and revenue in the first quarter.

For the first quarter salesforce.com reported EPS of 11 cents a share, beating the Capital IQ Consensus Estimate of 10 cents a share by 1 cent. Revenue grew 37.8% from the year-ago quarter to $1.23 billion. Analysts expected revenue of $1.21 billion for the quarter.

Looking forward to full-year 2015 salesforce.com expects EPS of 49 cents to 51 cents a share, while analysts expect 50 cents a share for the year. The company raised its revenue estimates for the year to $5.3 billion to $5.34 billion from $5.25 billion to $5.3 billion. Analysts expect revenue of $5.29 billion for the year.

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TheStreet Ratings team rates SALESFORCE.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate SALESFORCE.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, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk."

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