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Salesforce: Will The FORCE Be With The Earnings Report?

Published 08/29/2016, 09:13 AM
Updated 03/09/2019, 08:30 AM

Salesforce.com Inc (NYSE:CRM)

Salesforce.com (NYSE:CRM) will report earnings on August 31st. This will be the fiscal second quarter earnings report from the company. Salesforce, as traders and investors know it, CRM, -the symbol- which by the way stands for ‘customer relationship management’ – was founded by four ex- Oracle (NYSE:ORCL) executives. Earnings are not expected to be stellar, as the company has never actually turned a GAAP profit since they became public in 1999.

The Technicals

CRM Daily Chart

In the Daily price chart above, one can see the two parallel lines with red being the resistance and the green being the support. These trend lines have served the stock well for trading between a defined area for some time now. This may ALL change , however when Salesforce reports this upcoming week.

CRM Weekly Chart

In the above WEEKLY price chart, one can see a very nice,strong upward(45 degree) price trend that has been in place for well over 3 years. Many traders and investors will be closely watching this earnings report to see if any changes occur that may alter this strong trend.

Analyst’s Comments

For fiscal 2Q17, analysts expect Salesforce to post revenue and non-GAAP (generally accepted accounting principles) EPS (earnings per share) of ~$2.0 billion and $0.22, respectively. It is very likely that Salesforce’s fiscal 2Q17 results will follow its past trends and meet or exceed analysts’ expectations.

For fiscal 2Q17, Salesforce has provided revenue and EPS (earnings per share) guidance in the range of $2.01 billion to $2.02 billion and $0.24 to $0.25, respectively.

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However, Piper Jaffray is not very optimistic about Salesforce’s impending fiscal 2Q17 results. According to Investor’s Business Daily, Alex Zukin, an analyst with Piper Jaffray, stated that “our checks indicate a somewhat lighter new business quarter than prior periods with typical Q2 seasonality combining with a few one-time factors.”

However, the research house clarified that it does “not believe these issues to be structural or competitive in nature.” As a result, it did not adjust the rating or price target on Salesforce stock. Piper Jaffray has an “overweight” rating on Salesforce’s stock, with a $100 price target.-marketrealist.com

Company Profile

salesforce.com, inc. provides enterprise cloud computing solutions, with a focus on customer relationship management to various businesses and industries worldwide. It offers enterprise cloud computing applications and platform services, including Sales Cloud that enables companies to store data, monitor leads and progress, forecast opportunities, gain insights through relationship intelligence, and collaborate around sales on desktop and mobile devices. The company also provides Service Cloud that enables companies to deliver personalized customer service and support, as well as connects their service agents with customers on various devices; and Marketing Cloud, which enables companies to plan, personalize, and optimize customer interactions.

In addition, it offers Community Cloud that enables companies to engage with groups of people by giving them access to information, applications, and experts; Analytics Cloud, an application, which enables companies to deploy sales, service, marketing, and custom analytics applications using various data source; Internet of Things Cloud that enables customers to process data, as well as build personalized actions and engage with customers in real time; and App Cloud, an application development platform for companies to deliver connected applications for various business needs.

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In addition, the company provides professional services, including consulting, deployment, training, and design and integration services to facilitate the adoption of its cloud solutions, as well as offers various education service offerings ranging from introductory online courses to advanced architecture certifications. It sells and markets services primarily through its direct sales force, as well as through consulting firms, systems integrators, and regional partners. salesforce.com, inc. was founded in 1999 and is headquartered in San Francisco, California.

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