Customer relationship management software maker Salesforce (NYSE:CRM) will be reporting results tomorrow after the bell. Here’s what to look for.
Salesforce beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $9.33 billion, up 8.4% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Salesforce a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Salesforce’s revenue to grow 7.2% year on year to $9.35 billion, slowing from the 11.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.45 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Salesforce has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1% on average.
Looking at Salesforce’s peers in the sales software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. HubSpot delivered year-on-year revenue growth of 20.1%, beating analysts’ expectations by 3.5%, and Freshworks reported revenues up 21.5%, topping estimates by 2.7%. HubSpot traded up 7.7% following the results while Freshworks was also up 28.4%.
Read our full analysis of HubSpot’s results here and Freshworks’s results here.
There has been positive sentiment among investors in the sales software segment, with share prices up 17% on average over the last month. Salesforce is up 10.7% during the same time and is heading into earnings with an average analyst price target of $348.94 (compared to the current share price of $329.99).
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