Salesforce Beats and the Stock Retreats

By | August 22, 2017

Associated Press August 22, 2017

SAN FRANCISCO (AP) Salesforce.com Inc. (CRM) on Tuesday reported fiscal second-quarter profit of $17.7 million.

On a per-share basis, the San Francisco-based company said it had profit of 2 cents. Earnings, adjusted for one-time gains and costs, came to 33 cents per share.

The results surpassed Wall Street expectations. The average estimate of 18 analysts surveyed by Zacks Investment Research was for earnings of 31 cents per share.

The customer-management software developer posted revenue of $2.56 billion in the period, which also topped Street forecasts. Thirteen analysts surveyed by Zacks expected $2.52 billion.

For the current quarter ending in November, Salesforce.com expects its per-share earnings to range from 36 cents to 37 cents.

The company said it expects revenue in the range of $2.64 billion to $2.65 billion for the fiscal third quarter. Analysts surveyed by Zacks had expected revenue of $2.61 billion.

Salesforce.com expects full-year earnings in the range of $1.29 to $1.31 per share, with revenue ranging from $10.35 billion to $10.4 billion.

Salesforce.com shares have risen 36 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen 9.5 percent. In the final minutes of trading on Tuesday, shares hit $92.95, an increase of 20 percent in the last 12 months.

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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CRM at https://www.zacks.com/ap/CRM

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