| Over a month ago | ||||
Reports Q1 revenue… Reports Q1 revenue $46.6M, consensus $50.31M. Fiscal 2020 first quarter pre-tax loss included an estimated $4.8M, or 32c per share, related to asset impairment charges. | ||||
Salesforce (CRM) is… Salesforce (CRM) is scheduled to report results of its first fiscal quarter after the market close on Thursday, May 28, with a conference call scheduled for 5:00 pm ET. What to watch for: 1. GUIDANCE: Along with its fourth quarter earnings report, Salesforce set its fiscal year 2021 adjusted earnings per share view at $3.16-$3.18. Consensus for earnings, which was $3.10 at the time, has remained the same. The company also raised its 2021 revenue view to $21B-$21.1B from $20.8B-$20.9B. Consensus, which was $20.93B at the time, has dropped slightly to $20.77B. In addition, the company provided first quarter adjusted EPS guidance of 70c-71c on a revenue of $4.875B-$4.885B. Consensus for earnings, which was at 55c at the time, has risen to 69c, and estimates for revenue, which was at $4.84B, have increased to $4.85B. 2. CO-CEO STEPS DOWN: The company announced in February that Keith Block had stepped down as co-CEO of Salesforce and Marc Benioff would remain as Chair and CEO of the company. Additionally, Salesforce named Gavin Patterson, former BT Group CEO, its president and CEO of Salesforce International. 3. VLOCITY ACQUISITION: The company announced with its earnings report that it entered into an agreement to acquire Vlocity, a provider of industry-specific cloud and mobile software built natively on the Salesforce platform, for approximately $1.33B. The purchase price will be paid in cash and the assumption of outstanding unvested equity awards held by Vlocity employees. The acquisition is expected to close during Q2 of 2021, subject to customary closing conditions. 4. PARTNERSHIPS: RTW Retailwinds (RTW) announced in February a multi-year partnership for Salesforce to be its new digital ecommerce platform partner for all businesses, including New York & Company, Fashion to Figure, and Happy x Nature. Additionally in March, Salesforce announced an expanded relationship with Build-A-Bear Workshop (BBW) as its strategic partner in digital transformation. 5. ANALYST VIEWS: In May, Oppenheimer analyst Brian Schwartz raised the firm's price target on Salesforce to $195 from $165 and kept an Outperform rating on the shares. While the analyst acknowledges that the company is not immune from the COVID-19 issues, he believes the high priority SaaS enjoys across global enterprises is broadly unchanged. Jefferies analyst Brent Thill also raised the firm's price target on Salesforce to $205 from $180 and kept a Buy rating on the shares. The analyst noted that his survey of over 50 partners indicated that over 70% saw their CRM pipelines decrease due to the pandemic, but longer term, he sees its pipeline remaining robust. Additionally in May, RBC Capital analyst Alex Zukin lowered the firm's price target on Salesforce to $210 from $230 but kept an Outperform rating on the shares. The analyst said the company is not immune to the global demand trends, but he continues to see its Service Cloud, Commerce Cloud, Healthcare, FinServ and Contact Tracing efforts driving bookings momentum. | ||||
| Over a quarter ago | ||||
Salesforce (CRM)… Salesforce (CRM) announced an expanded relationship with Build-A-Bear Workshop (BBW). Build-A-Bear has selected Salesforce as its strategic partner in digital transformation as it plans to diversify its retail portfolio, evolve its business model, and build stronger relationships with consumers. | ||||
Reports Q4 revenue… Reports Q4 revenue $104.6M, consensus $103.29M. CEO Sharon Price John states, "We believe these results, which include our ninth consecutive quarter of double-digit e-commerce expansion and an over 80% increase in commercial revenue for the year, demonstrate the success of our strategy to diversify our business model by leveraging the strength of our brand. Our business year-to-date has been positive, although we recognize the uncertainty in the evolving marketplace due to the coronavirus. As such, we are evaluating potential business scenarios while remaining focused on our long-term goal to build on the foundation and infrastructure that we have been developing for several years". | ||||
Build-A-Bear is down… Build-A-Bear is down -7.0%, or -34c to $4.50. | ||||
Earlier in Tuesday's… Earlier in Tuesday's session, Build-A-Bear Workshop updated its financial guidance for fiscal year 2019 ahead of its presentation at the 22nd Annual ICR Conference. The company is raising its guidance for fiscal 2019 from what was previously issued on December 5. On a preliminary basis for the 2019 fiscal year the company expects: Total revenue for the fiscal year to be in the range of $334M to $338M compared to $336.6M in fiscal year 2018. The projected total revenue for fiscal 2019 includes fourth quarter total revenue that is expected to be flat to slightly positive reflecting growth in December and continuing momentum in the final month of the period. The Company believes that it has benefitted from its gift giving programs including stronger gift card sales leading to higher redemption rates post-holiday; it also expects to deliver its ninth consecutive quarter of double-digit eCommerce growth; Pre-tax income to be in the range of $0.1M to $2.0M compared to a pre-tax loss of $18.5M in fiscal year 2018; and Cash and cash equivalents to end the year in the range of $25M to $30M compared to $17.8M at the end of fiscal 2018; the Company is projected to have no borrowings under its revolving credit facility at year-end. Sharon Price John, Build-A-Bear Workshop Chief Executive Officer commented, "We are pleased to have seen a positive shift in sales trend as the fourth quarter progressed leading into the peak holiday period and sales have continued to grow post-holiday with stronger gift card redemption levels and positive consumer response to our newest merchandise offerings leading us to increase our guidance for the year. In addition to the improvement in our retail store base, we are also pleased with the continuing progress in our eCommerce segment which we expect to deliver a ninth consecutive quarter of double digit growth, a pattern than has been consistent since we implemented an upgrade to our platform in 2017. While we expect traditional retail to remain challenging on a macro basis, we believe that our projected results for 2019 demonstrate the long-term viability of our strategic plan to diversify our retail portfolio, leverage consumer affinity and demand for our strong brand and advance key initiatives that we expect to further evolve our business model into margin-accretive revenue streams." Shares of the company are up 15% or 5c per share to $3.90 per share in afternoon trading. | |
Build-A-Bear is up 12.4%,… Build-A-Bear is up 12.4%, or 42c to $3.82. | |
Build-A-Bear is up 8.8%,… Build-A-Bear is up 8.8%, or 30c to $3.70. | |
Build-A-Bear is up 7.9%,… Build-A-Bear is up 7.9%, or 27c to $3.67. | |
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