Salesforce (CRM) Soars After Q4 Beat

Shares of Salesforce.com (CRM) jumped more than 9% in extended trading after posting better-than-expected forward guidance. The software and cloud-computing technology firm reported earnings of $0.19 per share on revenues of $1.81 billion, up 25.3% from a year ago. Analysts were expecting EPS of $0.19 on revenues of $1.79 billion.

Profitability-wise, the $41.51 billion market cap company reported operating cash flow of $459 million, up 38% year-over-year. Full year cash flow came in at $1.61 billion, up 37% YoY.

For the current quarter ending in May, Salesforce said it expects revenues of $1.885-$1.895 billion, as compared to analysts’ expectations of $1.86 billion. The management also gave its bottom line range of $0.23-$0.24 per share, against projections of $0.21 per share. The company also issued EPS guidance for full fiscal year 2017 saying it expects EPS to range between $0.99-$1.01 versus $0.99 consensus.

“By any measure, this was a spectacular finish to the year with 27% revenue growth in constant currency for the fourth quarter, and for the full year,” commented Marc Benioff, chairman and CEO, Salesforce. “We are raising our fiscal year 2017 revenue guidance to $8.12 billion at the high end of our range — unprecedented growth for a company of our size and scale.”

On trading metrics, CRM today printed a higher than average trading volume with the issue trading 11.72 million shares, compared to the average volume of 7.32 million. The stock began trading this morning at $62.00 to currently trade 9.55% higher from the prior days close of $62.90. On an intraday basis it has gotten as low as $60.33 and as high as $68.25.

Salesforce.com’s current year and next year EPS growth estimates stand at 44.20% and 32%, compared to the industry growth rates of 12.10% and 19.50%, respectively. The name has a t-12 price-to-sales ratio of 6.63. EPS for the same period registers at ($0.13).

Salesforce shares have declined 10.58% in the last 4 weeks and 22.81% in the past three months. Over the past 5 trading sessions the stock has lost 1.53%. The San Francisco, California-based company, currently valued at $41.51 billion, has a median Wall Street price target of $90.00 with a high target of $102.00.

Salesforce.com Inc. is up 0.95% year-over-year. The name saw its share price plunge 25% over the past two months, after reaching a 52-week high of $82.90 in November.

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