Salesforce Stock Rises 10% On Earnings Beat - InvestingChannel

Salesforce Stock Rises 10% On Earnings Beat

The stock of Salesforce (CRM) is up 10% after the cloud-computing giant issued fiscal third-quarter financial results that topped Wall Street forecasts.

The company announced earnings per share (EPS) of $2.11 U.S. a share, ahead of the $2.05 U.S. expected among analysts who cover the company.

Salesforce reported revenue of $8.72 billion U.S., up 11% from a year earlier and ahead of the consensus analyst expectation of $8.70 billion U.S.

Remaining performance obligations, which measures work still to be performed in the next 12 months, stood at $23.9 billion U.S., up 14% from a year ago.

Looking ahead, Salesforce now sees revenue for the full year of $34.75 billion U.S. to $34.80 billion U.S., and profits of $8.18 U.S. to $8.19 U.S. per share.

The company also expects full-year operating cash flow growth of 30% to 33%, above its previous forecast of 22% to 23%.

Salesforce repurchased $1.90 billion U.S. of common stock in the quarter and has about $10 billion U.S. remaining on its previously announced stock buyback program.

Regarding artificial intelligence (A.I.), Salesforce executives said the company is seeing early adoption of its new data-cloud offering, though the technology isn’t part of the company’s guidance for the current year.

Prior to today (Nov. 30), Salesforce’s stock had risen 70% this year to trade at $230.35 U.S. per share.

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