Salesforce.com Shares Tumble Over 7% on Weak Forecast

Share This Article
August 31, 2016 4:42pm NYSE:CRM

CRM software provider Salesforce.com, Inc. (NYSE:CRM) late today posted better-than-expected Q2 earnings, but its tepid Q3 and full-year outlook sent investors heading for the exits.


The San Francisco-based company reported Q2 adjusted net income of $0.24 per share, beating Wall Street estimates of $0.22. Revenue surged 25% from last year to $2.04 billion, also exceeding estimates of $2.02 billion.

Looking ahead, CRM forecast Q3 earnings to range from $0.20 to $0.21 per share, which would miss analysts’ view of $0.24. The company’s outlook for Q3 revenue of $2.11-2.12 billion would also miss estimates of $2.13 billion.

For the full-year 2017, Salesforce reaffirmed its prior guidance for EPS of $0.93 to $0.95, which could miss Wall Street estimates of $0.95. CRM lifted its full-year sales outlook to $8.275 to $8.325 billion, up from a prior $8.26 to $8.32 billion, but analysts are still expecting higher revenue of $8.35 billion.

From the press release:

“Second quarter revenue grew 25% in dollars, and 26% in constant currency, propelling Salesforce past the $2 billion quarterly revenue milestone. No other enterprise software company of our size is growing at this pace,” said Marc Benioff, chairman and CEO, Salesforce. “At Dreamforce, you’re going to see the next generation of Salesforce when we unveil Salesforce Einstein, the world’s first comprehensive artificial intelligence platform for CRM. I’ve never been more excited about the innovation happening at Salesforce.”

CRM-2016-08-31

Salesforce shares fell $6.04 (-7.61%) to $73.38 in after-hours trading Wednesday. Prior to today’s report, CRM shares had risen 1.3% year-to-date, trailing the 7% gain in the S&P 500 during the same period.


9 "Must Own" Growth Stocks For 2019

Read Next



Get Free Updates

Join over 50,000 investors who get the latest news from ETFDailyNews.com!

Most Popular



Explore More from ETFDailyNews.com

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again!

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories