Salesforce.com is scheduled to report earnings after Tuesday’s close. The stock hit a record high of $348.86/share in 2024 and is currently trading near $329. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $2.46/share on $9.34 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $2.50/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company’s earnings have grown nicely over the last few years. In 2020, the company earned $2.99/share. In 2021, earnings jumped to $4.92. Then, in 2022 earnings came in at $4.78. In 2023, earnings grew to $5.24 before exploding higher. This year, earnings are expected to grow to $8.22 and then grow to $10.10 in 2025 and 11.15/share in 2026! That growth is largely due to the very strong demand for its A.I. and other technology offerings.
A Closer Look At The Technicals
Technically, the stock is acting very well and is only trading 506% below its record high. The stock is trading above its 50 day moving average line (DMA) and above its longer-term 200 day moving average line which are both healthy signs. Furthermore, the stock is perched below resistance and can easily gap up to new highs if earnings are strong. Conversely, the bears want to see it gap down and fall if earnings fail to impress.
Company Profile
Salesforce, Inc. provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide.
The company’s service includes sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and artificial intelligence, and deliver quotes, contracts, and invoices; and service that enables companies to deliver trusted and highly personalized customer support at scale. In addition, its platform offering comprise a flexible platform that enables companies of various sizes, locations, and industries to build business workflow and apps with customer; online learning platform that allows anyone to learn in-demand Salesforce skills; and Slack, an intelligent productivity platform.
The company’s marketing services enables companies to plan, personalize, automate, and optimize customer marketing journey, connecting interaction, and connected products; and commerce services, which empowers shopping experience across various customer touchpoint, such as mobile, web, social, and stores and provides click-to-code tools that offers customers to build and deploy solutions. Further, its analytics offering includes Tableau, an end-to-end analytics solution for range of enterprise use cases and intelligent analytics with AI models, spot trends, predict outcomes, creates summaries, timely recommendations, and take action from any device; and integration service including MuleSoft, which provides building blocks to deliver end-to-end and connected experiences.
Additionally, the company provides data cloud, a hyperscale data engine native to Salesforce; vertical services to meet the needs of customers in industries, such as financial services, healthcare and life sciences, manufacturing and automotive and government; and offers salesforce starter for small and medium-sized businesses. Salesforce, Inc. was incorporated in 1999 and is headquartered in San Francisco, California.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: The stock has been featured in FindLeadingStocks.com which is my members-only stock market newsletter.