Close

Wedbush Raises Price Target on salesforce.com (CRM) Following EPS Beat

August 21, 2015 9:47 AM EDT
Get Alerts CRM Hot Sheet
Price: $301.18 -0.07%

Rating Summary:
    45 Buy, 19 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
Join SI Premium – FREE

Wedbush reiterated a Neutral rating on salesforce.com (NYSE: CRM), and raised the price target to $73.00 (from $72.00), following the company's 2Q16 earnings results. CRM reported 2Q16 revenue of $1,635M, above consensus of $1,598M, and above the guidance range of $1,590M - $1,600M. Non-GAAP EPS of $0.19, came in above consensus of $0.18, and above the guidance range of $0.17 - $0.18.

Analyst Steve Koenig commented, "The $37M top-line beat was much higher than prior quarters, and a $75M FY15 revenue guidance increase was well beyond our expectations for a $20M raise. Deferred revenue (+29% Y/Y) and derived billings (+20%) were solid – at the high end of guidance – but not nearly as surprisingly high as headline optics, and sales commissions only grew 7% Y/Y in the quarter. We suspect a good amount of the came from billings rolling off the balance sheet from prior quarters, and management likely had visibility into 2Q revenue acceleration when issuing guidance for the quarter. Still, the headline results testify to stronger new contracting activity in prior quarters than we had inferred, as well as minimal top-line deceleration throughout FY15."

For an analyst ratings summary and ratings history on salesforce.com click here. For more ratings news on salesforce.com click here.

Shares of salesforce.com closed at $67.82 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Earnings