Salesforce (CRM) is scheduled to report results of its third fiscal quarter after the market close on Tuesday, November 30, with a conference call scheduled for 5:00 pm ET. What to watch for:
GUIDANCE: Ahead of the company’s annual investor day, Salesforce forecast 2022 revenue of $26.25B-$26.35B. Consensus, which was $26.31B at the time, has increased to $26.33B. Along with its second quarter earnings report, Salesforce guided to fiscal year 2022 adjusted earnings per share of $4.36-$4.38. Consensus for EPS, which was $3.82 at the time, has since risen to $4.42. The company also provided third quarter adjusted EPS guidance of 91c-92c on revenue of $6.78B-$6.79B. Consensus for earnings, which was at 81c at the time, has risen to 92c, and consensus for revenue, which was at $6.66B, has inched up to $6.8B.
PARTNERSHIPS, FEATURES: In August, Salesforce announced Salesforce+, a streaming service with live and on-demand content to illuminate the future of technology in the digital first work-anywhere world. The company also announced in August new features combining the power of Slack and Salesforce. In September, FedEx (FDX) and Salesforce announced a new, multi-year partnership that integrates Salesforce Commerce Cloud and Salesforce Order Management with capabilities from FedEx and ShopRunner, its e-commerce platform and subsidiary. The company also announced in September that it is a net zero company across its full value chain and has achieved 100% renewable energy for its operations. Additionally in September, Salesforce announced Health Cloud 2.0, a technology developed to help businesses and governments deliver health and safety. In October, Bridgeline Digital (BLIN) announced that their Hawksearch software launched an updated 'Lightning-Ready' integration for Salesforce B2B Commerce Cloud on Salesforce AppExchange. Otonomo Technologies (OTMO) also announced it had launched the Otonomo App on Salesforce AppExchange. Additionally in October, Salesforce and DocuSign (DOCU) announced an expansion of their global strategic partnership to build new joint solutions for customers to accelerate how agreements are facilitated around the world. Rocket Mortgage (RKT) also announced a partnership with Salesforce in October to make the company's mortgage origination technology available to banks, credit unions and other financial institutions nationwide through Salesforce Financial Services Cloud.
ANALYST VIEWS: On November 23, Citi analyst Tyler Radke raised the firm's price target on Salesforce to $308 from $280 and kept a Neutral rating on the shares. The analyst said he believes fundamentals remain strong for Salesforce, with macro level strength in front-office digitization trends and large deal traction. However, he still sees risks around large acquisitions and would like to get more comfortable around its pace of long-term margin expansion. Meanwhile, Jefferies analyst Brent Thill raised the firm's price target on Salesforce to $360 from $325 and kept a Buy rating on the shares following a survey of over 40 partners that he called "the most positive survey in the past eight quarters." In his survey, 83% of respondents noted that their pipelines had improved, while 55% said that their pipelines had improved by more than 5%. Sentiment on Salesforce has improved since the investor day in late September and Thill believes the setup heading into the company's fiscal Q3 report is attractive due to easy comparisons for billings and CRPO combined with his robust demand checks. Additionally, BofA analyst Brad Sills raised the firm's price target on Salesforce to $360 from $330 and reiterated a Buy rating on the shares. Feedback from the company's partners suggests deal activity tracked in line or above expectations in the quarter, often accelerating from "steady" Q2 growth, largely driven by continued momentum across the broader Salesforce stack, Sills said. The analyst sees Q3 upside and increased margin discipline as likely catalysts for Salesforce shares. He reiterated the stock as a top pick into the Q3 print.
Salesforce
+1.64 (+0.55%)
FedEx
-4.33 (-1.80%)
Bridgeline Digital
-0.07 (-2.51%)
Otonomo Technologies
-0.155 (-4.22%)
DocuSign
+0.18 (+0.07%)
Rocket Companies
+0.105 (+0.67%)