Salesforce (CRM) Posts Earnings And Revenue Beats, Solid Guidance

Salesforce.com Inc. ( (NYSE:CRM) ) just released its second-quarter fiscal 2018 financial results, posting earnings of 33 cents per share and revenues of $2.56 billion. Currently, CRM is a Zacks Rank #2 (Buy) and is down 2.69% to $90.45 per share in trading shortly after its earnings report was released.

Salesforce:

Beat earnings estimates. The company posted earnings of 33 cents per share, beating the Zacks Consensus Estimate of 31 cents.

Beat revenue estimates. The company saw revenue figures of $2.561 billion, beating our consensus estimate $2.514 billion.

Total revenue was up 26% from the prior-year quarter, while cash generated from operations was $331 million, an increase of 32% year-over-year.

“We had a phenomenal quarter of growth, reaching a huge milestone for the company, becoming the first enterprise cloud software company to break the $10 billion revenue run rate,” said CEO Marc Benioff. “We did this faster than any other enterprise software company in history.”

Salesforce expects third-quarter revenue fall in the range of $2.64 billion to $2.65 billion, an increase of 23% to 24% year-over-year. This is also ahead of our current consensus estimate, which calls for revenue of $2.61 billion.

The company also projects on-GAAP diluted earnings per share to be $0.36 to $0.37—also slightly above our current consensus estimate of $0.35

Here’s a graph that looks at Salesforce’s earnings performance history:

Salesforce.com Inc Price, Consensus and EPS Surprise

Salesforce.com Inc Price, Consensus and EPS Surprise | Salesforce.com Inc Quote

Salesforce.com is the market and technology leader in on-demand business services. The company's Salesforce suite of on-demand CRM applications allows customers to manage and share all of their sales, support, marketing and partner information on-demand. The Salesforce Platform, the world's first on- demand platform, enables customers, developers and partners to build powerful new on-demand applications that extend beyond CRM to deliver the benefits of multi-tenancy and The Business Web across the enterprise.

Check back later for our full analysis on CRM’s latest report!

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