Salesforce Inc (CRM)

[DiscoverGold]

Earnings Previews: Salesforce (CRM)
By: 24/7 Wall St. | February 24, 2021

Salesforce

Salesforce.com Inc. (NYSE: CRM) has recovered nicely from the COVID-19 pandemic trough in March and finished the year with a share price gain of around 37%. Shares posted their 52-week high on September 1, following second-fiscal quarter results that included a 29% year-over-year increase in sales and earnings per share (EPS) more than double analysts’ consensus estimate. Revenue and earnings again soared past estimates in the following quarter, beating prior year revenue by 20% and EPS estimates by 132%.

Analysts have a consensus fiscal fourth-quarter EPS estimate of $0.75 on revenue of $5.7 billion. These estimates represent a year-over-year increase of nearly 14% in EPS and 17% in revenue. For the full year, EPS is forecast to come in at $4.64, a jump of 55% compared to the prior-year quarter, and revenue is tabbed to come in at $21.1 billion, an increase of 23.5%.

Shares traded Wednesday at around $238.27, compared to the consensus price target of $275.71, implying a potential upside to the share price of nearly 16%. Using the high price target of $320, the potential upside rises to around 34%.

At the current trading price, the stock trades at around 51 times expected fiscal 2021 EPS, 68 times expected 2022 EPS and 55 times expected 2023 earnings. Salesforce’s 2021 fiscal year ended in January.

Read Full Story »»»

DiscoverGold