Third quarter profit and revenue estimates exceeded by analysts

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  • For the third quarter, Salesforce reported revenue of £4.04 billion and adjusted earnings per share of £1.30.
    The cloud-based software company says it will buy Slack Technologies for £20.64 billion.
    Salesforce forecasts revenue of up to £4.23 billion for the fourth quarter.

    of salesforce.com Inc. (NYSE: CRM) on Tuesday announced its financial results for the third quarter of fiscal year, which exceeded analysts’ estimates for profits and revenue. The company also announced that it will purchase Slack Technologies Inc. for £20.64 billion.

    In Tuesday’s extended trading, Salesforce shares slipped nearly 4%. Including the price action, the San Francisco-based company is now exchanging hands for £172.64 per share after recovering from a year-low of £92.60 per share in March when the effects of the coronavirus pandemic peaked.

     

     

     

    The share started the year at £124.42 per share. If you want to invest in the stock market, you need a broker – here is a list of the most important ones to help you choose.

    Salesforce’s financial results for the 3rd quarter compared to analysts’ estimates

    According to Salesforce, its net profit for the third quarter was £800 million, or 86 pence per share. In the same quarter last year, it had reported a significantly lower net profit of £81.20 million or 8.94 pence per share.

    On an adjusted basis, the cloud-based software company earned £1.30 per share in the third quarter compared to 55.88 pence per share in the same period last year. In terms of revenue, Salesforce saw an increase to £4.04 billion in the final quarter from £3.36 billion a year ago.

    According to FactSet, analysts had expected the company to generate revenues of £3.90 billion in the third quarter. Their estimate of earnings per share was capped at a much lower 55.88 pence. In the previous quarter (Q2), Salesforce had generated revenues of £3.91 billion, according to the report released in August.

    Salesforce’s forecast for the fourth quarter

    Salesforce Chairman Marc Benioff commented on Tuesday’s earnings report, saying

    “We had another record quarter and now we are raising our revenue forecast for FY21 to £15.73 billion at the top end and starting with the forecast for FY22 of £19 billion.

    For the fourth quarter of the financial year, Salesforce now expects up to 55.13 pence per share adjusted earnings on revenues of up to £4.23 billion. Experts, on the other hand, are calling for a higher 64.07 pence per share in adjusted profits and £4.10 billion in revenue.

    Salesforce has performed quite well in the stock market over the past year, with annual profits of over 20%. At the time of writing this report, the company is valued at £163.62 billion and has a price-earnings ratio of 94.55.

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