NEW YORK (TheStreet) -- Shares of Salesforce.com (CRM) were falling 4.4% to $58.35 after-hours Wednesday after the cloud software company guided below analysts' estimates for the fiscal fourth quarter.
The company said it expects earnings of 13 cent to 14 cents a share and revenue of $1.436 billion to $1.441 billion for the fourth quarter. Analysts expect earnings of 15 cents and revenue of $1.45 billion for the fourth quarter.
Salesforce reported earnings of 14 cents a share for the third quarter, beating analysts' estimates of 13 cents a share by 1 cent. Revenue increased 27.8% year over year to $1.38 billion, compared to analysts' estimates of $1.37 billion.
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 increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk."
You can view the full analysis from the report here: CRM Ratings Report