Salesforce.com reported adjusted earnings of 13 cents a share on revenue of $1.32 billion. The consensus estimate had called for EPS of 12 cents on revenue of $1.29 billion.
The company also issued guidance for the third quarter and full year. For the third quarter, Salesforce.com expects adjusted EPS of 12 cents to 13 cents on revenue of $1.365 billion to $1.37 billion. Analysts expect EPS of 13 cents on revenue of $1.37 billion.
For the full year, the company expects adjusted EPS of 50 cents to 52 cents on revenue of $5.34 to $5.37 billion, while the consensus estimate calls for EPS of 51 cents on revenue of $5.34 billion.
The stock closed up 7.34% to $59.80. More than 24.3 million shares had changed hands, compared to the average volume of 4,882,760.
Separately, 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, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and generally higher debt management risk."