Salesforce.com (CRM) Exceeds High Expecations, But Is There More Left
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Price: $209.17 +1.82%
Rating Summary:
48 Buy, 20 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
48 Buy, 20 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Shares of Salesforce.com (NYSE: CRM) are up today but off the highs after another stellar quarter.
Salesforce.com reported fourth quarter earnings of $0.31, ex-items, 5 cents better than the Wall Street consensus. Revenues was $457 million, versus the consensus of $452.7 million.
Salesforce.com sees Q112 revs of $480 - $482 million and EPS of $0.26 - $0.27, versus the consensus revs of $471 million and EPS of $0.31. For FY12, EPS is expected to be $1.35 - $1.38 and revs of $2.03 - $2.05 billion, versus the consensus EPS of $1.39 and revs of $2.04 billion.
Wall Street was mostly positive on the quarter, although many told investors to stay on the sidelines due to valuation.
UBS was one of the most bullish, cranking their price target up from $165 to $178 and reiterating their Buy rating. UBS noted that the strength of CRM's business is exceeding most expectations with billing accelerating for the 7th consecutive quarter, growing 36% year-over-year. Also average average contract duration lengthened, a positive sign for customers' long-term commitment.
Analysts at FBR Capital noted that the company is "executing well on its diversification strategy as adoption of its non-sales force automation (SFA) products such as Service Cloud and the Force.com platform continues to build," That said, the challenge for the company lies in executing flawlessly and making its investments pay off, the firm said. With risk/reward neutral, the firm is maintaining the Market Perform but moves up its price target from $140 to $155.
Salesforce.com reported fourth quarter earnings of $0.31, ex-items, 5 cents better than the Wall Street consensus. Revenues was $457 million, versus the consensus of $452.7 million.
Salesforce.com sees Q112 revs of $480 - $482 million and EPS of $0.26 - $0.27, versus the consensus revs of $471 million and EPS of $0.31. For FY12, EPS is expected to be $1.35 - $1.38 and revs of $2.03 - $2.05 billion, versus the consensus EPS of $1.39 and revs of $2.04 billion.
Wall Street was mostly positive on the quarter, although many told investors to stay on the sidelines due to valuation.
UBS was one of the most bullish, cranking their price target up from $165 to $178 and reiterating their Buy rating. UBS noted that the strength of CRM's business is exceeding most expectations with billing accelerating for the 7th consecutive quarter, growing 36% year-over-year. Also average average contract duration lengthened, a positive sign for customers' long-term commitment.
Analysts at FBR Capital noted that the company is "executing well on its diversification strategy as adoption of its non-sales force automation (SFA) products such as Service Cloud and the Force.com platform continues to build," That said, the challenge for the company lies in executing flawlessly and making its investments pay off, the firm said. With risk/reward neutral, the firm is maintaining the Market Perform but moves up its price target from $140 to $155.
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