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Salesforce Stock Is Sinking Based on Q2 Earnings Forecasts
Sales force (CRM) shares are tanking after Wednesday’s market close, with the cloud computing company reporting mixed first-quarter earnings results. Salesforce reported revenue of $9.13 billion ($9.15 billion expected) and earnings of $2.44 per share ($2.38 per share expected). The downward pressure on the stock is heavily attributed to Salesforce’s missed Q2 forecast. The company is raising its full-year outlook
Yahoo Finance Julie Hyman It is Josh Lipton Review Salesforce guidance and commentary from CEO Marc Benioff.
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This post was written by Luke Carberry Mogan.
Video transcript
I have to get to the sales force’s earnings.
These numbers were just released and shares quickly dropped 9.5%.
It seems like it has to do with the forecast here.
Second quarter revenue seen between 9.2 and 9.25 billion.
Analysts are looking for $9.35 billion.
Also the Q2 earnings per share forecast, which is expected to be a maximum of $2.36, compared to an analyst’s $2.40 here.
Um, at the same time, it looks like the company is raising its full-year earnings per share forecast here.
But people are focusing on what’s happening with the second quarter forecast in terms of how the company beat estimates last quarter when it comes to earnings per share.
244 against 238.
This was an estimated revenue practically in line with the US$ 9.13 billion there.
But, oh, this prediction is causing these actions to reduce the number of jobs.
Yes, that will be the focal point.
I mean, there were people who said Julian, given the results that we saw in the day’s work, which, of course, really disappointed investors and generally what the street uses is a kind of broad negativity towards software in general.
I, I think it’s fair to say a lot, even people who had, you know, people who bought into the, in the name, we don’t expect a lot of upside, but clearly, that’s disappointing about, about the forecast.
I’m just looking at the notes, what Mark Benioff had to say.
It’s kind of canceling out the continuation of the profitable growth trajectory.
It’s saying the beginning of a huge opportunity for our customers to connect with their, our, our customers, connect with their customers, in a whole new way with A I.
So trying to sound that positive tone, but the initial view here, um, is obviously disappointing.
Well, and of course, Benioff was going back and forth with activists, so he seems to have gotten over it.
Um, but it still has something to prove in terms of slowing business growth here.
The story continues
Uh The company has seen a 39% increase in cash flow every year, as you point out, that’s something he’s emphasizing.
But, um, you know, if you can’t deliver on what’s happening with the sales growth that people are looking for, then the stock will take a hit, the stock was basically flat this year.
Now, it’s being bombed here, at least initially, after hours.
So let’s keep watching