Salesforce (NYSE:CRM) Releases Q4 Earnings Guidance

Salesforce (NYSE:CRM) updated its fourth quarter earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of $2.57-2.62 for the period, compared to the consensus estimate of $2.66. The company issued revenue guidance of $9.90-10.10 billion, compared to the consensus revenue estimate of $10.05 billion. Salesforce also updated its FY 2025 guidance to 9.980-10.030 EPS.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on CRM. Morgan Stanley upped their target price on shares of Salesforce from $320.00 to $330.00 and gave the company an “overweight” rating in a report on Thursday, August 29th. Stifel Nicolaus upped their target price on shares of Salesforce from $320.00 to $350.00 and gave the company a “buy” rating in a report on Monday, October 28th. BNP Paribas raised shares of Salesforce to a “strong-buy” rating in a report on Thursday, August 29th. Scotiabank assumed coverage on shares of Salesforce in a report on Monday, November 18th. They set a “sector outperform” rating and a $425.00 price target for the company. Finally, Royal Bank of Canada reissued an “outperform” rating and set a $300.00 price target on shares of Salesforce in a report on Thursday, September 19th. Seven equities research analysts have rated the stock with a hold rating, twenty-nine have issued a buy rating and four have given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Salesforce presently has an average rating of “Moderate Buy” and an average target price of $345.31.

Salesforce Trading Up 0.1 %

Shares of CRM stock traded up $0.42 during mid-day trading on Tuesday, reaching $331.43. The company’s stock had a trading volume of 11,610,435 shares, compared to its average volume of 6,312,231. The company’s 50 day simple moving average is $302.12 and its 200-day simple moving average is $270.49. Salesforce has a 12-month low of $212.00 and a 12-month high of $348.86. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.15. The firm has a market capitalization of $316.85 billion, a PE ratio of 57.45, a price-to-earnings-growth ratio of 2.99 and a beta of 1.30.

Salesforce (NYSE:CRM) last issued its earnings results on Tuesday, December 3rd. The CRM provider reported $2.41 EPS for the quarter, missing analysts’ consensus estimates of $2.44 by ($0.03). Salesforce had a net margin of 15.44% and a return on equity of 12.01%. The business had revenue of $9.44 billion during the quarter, compared to analysts’ expectations of $9.35 billion. During the same period in the prior year, the business posted $1.62 EPS. The business’s revenue was up 8.3% on a year-over-year basis. On average, research analysts predict that Salesforce will post 7.54 EPS for the current fiscal year.

Salesforce Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, October 8th. Investors of record on Wednesday, September 18th were paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 0.48%. The ex-dividend date of this dividend was Wednesday, September 18th. Salesforce’s dividend payout ratio (DPR) is 27.83%.

Insider Activity at Salesforce

In related news, insider Sabastian Niles sold 2,484 shares of Salesforce stock in a transaction dated Wednesday, September 11th. The stock was sold at an average price of $244.81, for a total value of $608,108.04. Following the completion of the transaction, the insider now directly owns 828 shares in the company, valued at approximately $202,702.68. This trade represents a 75.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Miguel Milano sold 719 shares of the stock in a transaction that occurred on Monday, November 25th. The stock was sold at an average price of $342.81, for a total value of $246,480.39. Following the transaction, the insider now directly owns 4,659 shares in the company, valued at approximately $1,597,151.79. This represents a 13.37 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 140,982 shares of company stock valued at $41,591,457. Insiders own 3.20% of the company’s stock.

About Salesforce

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.