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Salesforce.com Lifts FY 2014 Guidance, Swings To Q2 Profit

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Big onetime tax benefit and double digit revenue growth helped the cloud computing solutions provider, Salesforce.com (NYSE: CRM) swing to a fiscal second quarter profit. Shares, climbed sharply in premarket trading as both revenue and earnings topped Street’s estimate. Reporting quarterly results after the market close on Thursday, the Company also provided upbeat guidance for the fiscal 2014 and for the current quarter.

For the fiscal second quarter, Salesforce.com posted a profit of $76.6 million or 12 cents a share compared to a loss of $9.8 million or 2 cents a share.

Stripping out onetime items, the adjusted earnings stood at $56.3 million or 9 cents a share down from $60.7 million or 10 cents a share, in the year-earlier quarter. Analysts’ consensus estimate was for earnings of 7 cents a share.

Revenue soared 31% to $957.1 million from $731.6 million, in the same period of last year. The acquisition of ExactTarget helped in driving up the top-line growth. Analysts polled by Thomson Reuters had expected revenue of $939.25 million.

For the current quarter, Salesforce.com expects adjusted earnings of 8 cents to 9 cents a share on revenue range of $1.05 billion to $1.06 billion. Analysts’ consensus estimate was for earnings of 7 cents a share on revenue of $1.04 billion.

For the fiscal 2014, the Company now anticipates adjusted earnings of 32 cents to 34 cents a share on revenue of $4.00 billion to $4.03 billion compared to its earlier guidance of 31 cents to 33 cents a share on revenue of $3.96 billion to $4.00 billion.

 

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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