Salesforce.com Beats Profit, Revenue Views, Tweaks Full-Year Outlook – Investor's Business Daily

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XAutoplay: On | Off Salesforce.com (CRM) saw earnings climb 16% for its first quarter of fiscal 2018, beating analyst views. The leader in software-as-a-service raised its full-year guidance a tad.  

Shares in Salesforce.com seesawed in after-hours trading initially but moved to a gain of 1.2% to 88.79 on the stock market today. July-quarter profit guidance was in line, while its revenue outlook was slightly above expectations.

Salesforce said adjusted earnings were 28 cents a share, up 17% vs. a year earlier, with revenue rising 25% to $2.39 billion for the period ended April 30. Analysts expected Salesforce.com to report earnings of 26 cents on sales of $2.35 billion. 

After Salesforce.com reported fourth-quarter 2017 results in February, analysts said the company gave conservative guidance for a seasonally tough quarter.

For the July quarter, Salesforce.com forecast non-GAAP profit in a range of 31 cents to 32 cents, in line with consensus estimates. The company forecast revenue growth of about 23% to $2.51 billion vs. analyst estimates of $2.48 billion.

Salesforce.com’s billings outlook for the July quarter was below consensus. The company gave implied billings guidance of $2.13 billion to $2.14 billion, up 17% from a year earlier, but lower than views of $2.23 billion.

“Management (is) likely being conservative,” said a Mizuho Securities report.

Salesforce.com tweaked full-year fiscal 2018 revenue growth to a range of $10.25 billion to $10.30 billion, up about 22%, vs. its earlier guidance of $10.15 billion to $10.20 billion.

The company bumped up its full-year profit forecast to a range of $1.28 to $1.30 per share, up from $1.27 to $1.29 per share.

Salesforce.com’s software helps businesses organize and handle sales operations and customer relationships. The company has expanded into marketing, human resources, e-commerce and other software markets.

Salesforce closed Thursday at 87.75, still in range from a 84.58 buy point. The 5% chase zone extends to 88.81.

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