Salesforce Q1 results: ‘I don’t think the stock will run much higher’
Salesforce Inc (NYSE: CRM) jumped nearly 8.0% in extended trading on Tuesday after the cloud company reported market-beating results for its fiscal first quarter and raised its full-year guidance for earnings.
Key takeaways from Salesforce Q1 results
Net income printed at $28 million versus the year-ago figure of $469 million.EPS of 3 cents was significantly lower than 50 cents in Q1 of the previous year.On an adjusted basis, per-share earnings came in at 98 cents in the recent quarter.Revenue went up 24% YoY to $7.41 billion, as per the earnings press release.FactSet consensus was for 94 cents of adjusted EPS on $7.38 billion in revenue.
Salesforce had $42 billion worth of remaining performance obligations at the end of its fiscal Q1. The stock is still down more than 30% for the year.
Future outlook and expert’s remarks
For the full financial year, Salesforce forecasts its adjusted earnings to fall between $4.74 and $4.76. It, however, trimmed its revenue outlook and now expects up to $31.8 billion this year.
In comparison, analysts had called for $4.66 of EPS on $32.06 billion in revenue for fiscal 2023. On CNBC’s “Closing Bell: Overtime”, Profit Investments’ Eugene Profit said:
The stock won’t go down much, but I don’t think it will run much higher either. I like it, valuation is good compared to last year. But I think we need a little bit more macroeconomic stability for it to really take off again.
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