Analysts on Wall Street project that Salesforce.com (CRM) will announce quarterly earnings of $2.85 per share in its forthcoming report, representing an increase of 18.3% year over year. Revenues are projected to reach $10.26 billion, increasing 8.7% from the same quarter last year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Salesforce.com metrics that Wall Street analysts commonly model and monitor.
It is projected by analysts that the 'Revenue- Professional services and other' will reach $541.51 million. The estimate suggests a change of -4.2% year over year.
The collective assessment of analysts points to an estimated 'Revenue- Subscription and support' of $9.72 billion. The estimate indicates a year-over-year change of +9.5%.
Analysts' assessment points toward 'Revenue- Subscription and support- Service' reaching $2.50 billion. The estimate suggests a change of +9.1% year over year.
The consensus among analysts is that 'Revenue- Subscription and support- Marketing and Commerce' will reach $1.39 billion. The estimate points to a change of +4.2% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenue- Subscription and support- Platform and Other' should arrive at $2.07 billion. The estimate suggests a change of +13.4% year over year.
Analysts forecast 'Revenue- Subscription and support- Integration and Analytics' to reach $1.47 billion. The estimate points to a change of +11.6% from the year-ago quarter.
The combined assessment of analysts suggests that 'Geographic Revenue- Americas' will likely reach $7.18 billion. The estimate points to a change of +15.5% from the year-ago quarter.
The average prediction of analysts places 'Geographic Revenue- Asia Pacific' at $1.02 billion. The estimate indicates a change of +2.7% from the prior-year quarter.
Analysts predict that the 'Geographic Revenue- Europe' will reach $2.05 billion. The estimate points to a change of -7.8% from the year-ago quarter.
The consensus estimate for 'Remaining performance obligation (RPO) - Current' stands at $29.04 billion. Compared to the current estimate, the company reported $26.40 billion in the same quarter of the previous year.
According to the collective judgment of analysts, 'Remaining performance obligation (RPO) - Total' should come in at $59.05 billion. Compared to the present estimate, the company reported $53.10 billion in the same quarter last year.
Analysts expect 'Remaining performance obligation (RPO) - Noncurrent' to come in at $30.01 billion. The estimate compares to the year-ago value of $26.70 billion.
View all Key Company Metrics for Salesforce.com here>>>
Shares of Salesforce.com have experienced a change of -9.3% in the past month compared to the +0.4% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), CRM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Salesforce Inc. (CRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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