Sometimes when a company reports in-line earnings, its stock price takes a knuckle to the temple. Other times, if a firm meets market expectations, it gets a nice pop in value.
Enter Salesforce the Latter. Today after the bell, Salesforce reported $1.44 billion in fourth quarter revenue, and adjusted earnings per share of $0.14. Both were dead in-line with market expectations. The company’s shares are up more than 6 percent in after-hours trading.
The company is currently trading at an all-time high. Tomorrow morning should be a watershed moment for the SaaS firm.
Is strong guidance pushing Salesforce higher? To a certain extent. The company raised its guidance, but only to levels that match market demands. Salesforce expects $1.48 billion to $1.50 billion in current-quarter revenue. The market expects the company to post $1.5 billion, so, both teams are mostly in agreement. It’s the same story when it comes to the company’s fiscal 2016 (current calendar year), with the company anticipating $6.47 billion to $6.52 billion in top line. The market? $6.5 billion.
So, all things seems to be skating along quite nicely. Aside from its nice 26 percent year-over-year revenue growth in the last quarter and strong cash generation, Business Insider’s Julie Bort makes a decent point: “Analysts were actually looking for a giant leap in profits over the year ago quarter when it reported $0.07 EPS on $1.15 billion in revenue.” That makes Salesforce’s meets-expectations quarter a little more enticing.
Given the above, I presume that Dreamforce will be as insufferable as always, provided that you live in San Francisco.