CRM software giant Salesforce (NYSE: CRM) will be announcing earnings results this Wednesday after market hours. Here’s what to expect.
Salesforce beat analysts’ revenue expectations last quarter, reporting revenues of $11.13 billion, up 13.3% year on year. It was a mixed quarter for the company, with full-year EPS guidance exceeding analysts’ expectations but a miss of analysts’ billings estimates.
Is Salesforce a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Salesforce’s revenue to grow 10.7% year on year, in line with the 9.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Salesforce has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Salesforce’s peers in the sales software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. ZoomInfo delivered year-on-year revenue growth of 1.2%, beating analysts’ expectations by 2.7%, and Freshworks reported revenues up 16%, topping estimates by 1.6%. ZoomInfo traded up 13.1% following the results while Freshworks was down 4.3%.
Read our full analysis of ZoomInfo’s results here and Freshworks’s results here.
There has been positive sentiment among investors in the sales software segment, with share prices up 15.7% on average over the last month. Salesforce is up 20.2% during the same time and is heading into earnings with an average analyst price target of $243.98 (compared to the current share price of $208.63).
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