Salesforce stock rallies on earnings beat, raised outlook

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Shares of Salesforce Inc. rebounded in Tuesday’s extended session after the cloud-based customer relationship management firm exceeded Wall Street’s estimates for the quarter and increased its earnings forecast for the year while lowering its earnings forecast for the year. their income orientation.

Salesforce CRM,
shares rose 6% after hours, after a 2.9% drop in the regular session to close at $ 160.24.

The company posted net first-quarter tax revenue of $ 28 million, or 3 cents a share, compared to $ 469 million, or 50 cents a share, last year. Adjusted earnings were 98 cents a share, up from $ 1.21 a share last year.

Revenue rose to $ 7.44 billion from $ 5.69 billion in the quarter last year.

Analysts surveyed by FactSet had estimated earnings of 94 cents per share with revenue of $ 7.38 billion, according to Salesforce’s forecast of 93 cents to 94 cents for revenue of $ 7.70 billion to $ 7.38 billion.

“There is no greater measure of our resilience and momentum in our business than the $ 42 billion we have in the remaining performance obligation, which represents all future revenue under contract,” said Marc Benioff. President and CEO of Salesforce, in a statement.

Salesforce expects adjusted second-quarter earnings of $ 1.01 to $ 1.02 per share with revenue of $ 7.69 billion to $ 7.7 billion, while analysts surveyed by FactSet had predicted 1, $ 14 in revenue of $ 7.77 billion.

For fiscal year 2023, Salesforce raised its earnings outlook while slashing its revenue forecast. The company projected adjusted earnings of $ 4.74 to $ 4.76 per share with revenue of $ 31.7 billion to $ 31.8 billion. In March, the company had forecast adjusted earnings of $ 4.62 to $ 4.64 per share with revenue of $ 32 billion to $ 32.1 billion.

Analysts expect $ 4.66 for revenue of $ 32.06 million for the year.

“Our product portfolio remains well positioned to serve our broad customer base,” said Amy Weaver, Chief Financial Officer of Salesforce, in a statement. “We have been able to deliver strong growth while driving disciplined decision-making, which has allowed us to expand our year-round operating margin orientation.”

Salesforce now expects operating margins of 20.4% for the year, compared to a 20% forecast in March.

Salesforce shares have fallen nearly 33% in the past 12 months, while the IGV ETF in the expanded technology software sector of iShares,
the S&P 500 SPX index is down 20%,
the high-tech Nasdaq COMP Composite Index fell 1.7%
has fallen 12.1% and the Dow Jones Industrial Average DJIA,
—Which has Salesforce as a component— has lost 4.5%.

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