Salesforce Inc (CRM)

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Earnings Preview: Salesforce Inc. (NYSE: CRM)
By: 24/7 Wall St. | February 28, 2023

• Here is a look at what to expect when the following three companies share their latest results after Wednesday’s closing bell.

Salesforce

Shares of enterprise software maker Salesforce Inc. (NYSE: CRM) have struggled over the past 12 months. The stock fell by 47% in 2022 but has recovered more than that loss in the new year. The sudden departure last month of co-CEO Brett Taylor and of Stewart Butterfield, who came to Salesforce in the Slack acquisition, unleashed a literal handful of activist investors demanding changes from now-sole CEO Marc Benioff. Demands for better operating margins are likely to lead to more layoffs. The outlook for the new fiscal year could be the deciding factor in how investors react to the quarterly report.

Of 53 analysts covering the stock, 39 have a Buy or Strong Buy rating. Another 13 rate it at Hold. At a share price of around $163.00, the upside potential based on a median price target of $200.00 is 22.7%. At the high price target of $384.30, the upside potential is 135.8%.

The consensus revenue estimate for the fourth quarter of fiscal 2023 is $7.99 billion, up 2.0% sequentially and 9.0% higher year over year. Adjusted EPS are forecast at $1.36, down 2.6% sequentially but up nearly 62% year over year. For the full fiscal year that ended in January, current estimates call for EPS of $4.93, up 3.2%, on sales of $31.05 billion, up about 17.2%.

Salesforce stock trades at 33.1 times expected 2023 EPS, 27.8 times estimated 2024 earnings of $5.87 and 23.2 times estimated 2025 earnings of $7.04 per share. The stock’s 52-week range is $126.34 to $222.16. The company does not pay a dividend. Total shareholder return for the past year was negative 21.6%.

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