Salesforce (NYSE:CRM) Releases Q3 Earnings Guidance

Salesforce (NYSE:CRM) updated its third quarter earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of $2.42-$2.44 for the period, compared to the consensus estimate of $2.42. The company issued revenue guidance of $9.31-$9.36 billion, compared to the consensus revenue estimate of $9.40 billion. Salesforce also updated its FY 2025 guidance to 10.030-10.110 EPS.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. Roth Mkm reaffirmed a buy rating and set a $335.00 price target on shares of Salesforce in a research note on Thursday. Macquarie reduced their price objective on shares of Salesforce from $330.00 to $275.00 and set an outperform rating for the company in a research note on Friday, May 31st. JMP Securities reissued a market outperform rating and issued a $342.00 price objective on shares of Salesforce in a research note on Wednesday. JPMorgan Chase & Co. boosted their price objective on shares of Salesforce from $300.00 to $310.00 and gave the stock an overweight rating in a research note on Thursday. Finally, Wedbush reissued an outperform rating and issued a $315.00 price objective on shares of Salesforce in a research note on Thursday. Nine analysts have rated the stock with a hold rating, twenty-six have issued a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of Moderate Buy and an average target price of $301.91.

Salesforce Price Performance

NYSE:CRM opened at $256.91 on Friday. Salesforce has a one year low of $193.68 and a one year high of $318.71. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.11 and a current ratio of 1.11. The firm has a market cap of $248.95 billion, a price-to-earnings ratio of 46.21, a PEG ratio of 2.22 and a beta of 1.29. The firm’s fifty day moving average is $253.98 and its two-hundred day moving average is $271.54.

Salesforce (NYSE:CRM) last posted its quarterly earnings results on Wednesday, August 28th. The CRM provider reported $1.92 EPS for the quarter, beating the consensus estimate of $1.73 by $0.19. Salesforce had a net margin of 15.30% and a return on equity of 11.57%. The company had revenue of $9.33 billion for the quarter, compared to analyst estimates of $9.22 billion. During the same period in the prior year, the company earned $1.63 earnings per share. The firm’s revenue was up 8.5% on a year-over-year basis. Research analysts expect that Salesforce will post 7.47 EPS for the current year.

Salesforce Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 25th. Shareholders of record on Tuesday, July 9th were given a $0.40 dividend. The ex-dividend date of this dividend was Tuesday, July 9th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.62%. Salesforce’s dividend payout ratio (DPR) is currently 28.78%.

Insiders Place Their Bets

In other Salesforce news, CAO Sundeep G. Reddy sold 413 shares of the company’s stock in a transaction dated Tuesday, July 23rd. The shares were sold at an average price of $255.78, for a total value of $105,637.14. Following the completion of the transaction, the chief accounting officer now owns 6,431 shares in the company, valued at $1,644,921.18. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. In related news, Director G Mason Morfit purchased 428,000 shares of Salesforce stock in a transaction that occurred on Monday, June 3rd. The stock was purchased at an average price of $233.17 per share, for a total transaction of $99,796,760.00. Following the transaction, the director now directly owns 3,914,309 shares in the company, valued at $912,699,429.53. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, CAO Sundeep G. Reddy sold 413 shares of the company’s stock in a transaction dated Tuesday, July 23rd. The stock was sold at an average price of $255.78, for a total transaction of $105,637.14. Following the transaction, the chief accounting officer now owns 6,431 shares of the company’s stock, valued at approximately $1,644,921.18. The disclosure for this sale can be found here. Over the last quarter, insiders sold 112,964 shares of company stock worth $27,956,647. Company insiders own 3.20% of the company’s stock.

Salesforce Company Profile

Salesforce, Inc provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company's service includes sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and artificial intelligence, and deliver quotes, contracts, and invoices; and service that enables companies to deliver trusted and highly personalized customer support at scale.