Salesforce Shares Rise on Earnings Beat, Guidance Raise
Salesforce (CRM) - Get Report shares are soaring after earnings, which beat estimates handily. The company also raised guidance.
The stock rose 12.10% to $242.80 a share in postmarket trading.
The stock was hot into earnings, but arguably not overstretched. It rose 13% in the two weeks leading into the print and traded at around 70 times the next twelve month’s earnings estimates. In the past few years, the stock has traded up to around 90 times. In the midst of a still-impressive global growth phase in software and data storage services, the company is clearly delivering.
Here’s what the company reported for the quarter against Wall Street’s expectations:
- Revenue: $5.15B v. $4.9B (Actual Result: +29% year-over-year)
- Subscription: $4.8B v. $4.62B
- Billings: $4.63B v. $4.05B
- Operating Margin: 28% v. 15%
- Adjusted EPS: $1.44 v. 67 cents
"It's humbling to have had one of the best quarters in Salesforce's history against the backdrop of multiple crises seriously affecting our communities around the world,” CEO Marc Benioff said.
The company guided for fiscal year 2021 revenue of $20.75 billion, a raised estimate from around $20 billion.
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