FBR Capital Maintains an 'Outperform' on salesforce.com (CRM); Expecting a Good Quarter
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Price: $196.21 -2.56%
Rating Summary:
48 Buy, 20 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
48 Buy, 20 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains an 'Outperform' on salesforce.com (NYSE: CRM), PT $170.
FBR analyst says, "Salesforce.com reports F1Q12 (April) results after the market close on Thursday. This is the seasonally slow fiscal first quarter, a quarter that historically is good but, on a relative basis, does not usually demonstrate the upside or strength of the other quarters. We think that same dynamic will play out again, where we are expecting a generally in-line quarter with momentum building throughout the year. We think billings growth will at least meet the current consensus of 28% growth. This is the first sequential deceleration since F1Q10, and while expected, we believe it has weighed on investor sentiment. Our checks tell us that the company’s core Sales Cloud offering remains strong and that Service Cloud continues to build momentum. While the earthquake and nuclear reactor crisis paralyzed business in Japan in the second half of March, we have heard of business activity approaching normalized levels in April. We think the risk to billings in Japan should be offset by the currency benefit on the company’s deferred revenues."
For Q1, FBR expect revenues to exceed our estimate and the consensus of $483 million...Expects pro forma EPS to meet our $0.27 expectation.
For more ratings news on salesforce.com click here and for the rating history of salesforce.com click here.
Shares of salesforce.com closed at $130.08 yesterday.
FBR analyst says, "Salesforce.com reports F1Q12 (April) results after the market close on Thursday. This is the seasonally slow fiscal first quarter, a quarter that historically is good but, on a relative basis, does not usually demonstrate the upside or strength of the other quarters. We think that same dynamic will play out again, where we are expecting a generally in-line quarter with momentum building throughout the year. We think billings growth will at least meet the current consensus of 28% growth. This is the first sequential deceleration since F1Q10, and while expected, we believe it has weighed on investor sentiment. Our checks tell us that the company’s core Sales Cloud offering remains strong and that Service Cloud continues to build momentum. While the earthquake and nuclear reactor crisis paralyzed business in Japan in the second half of March, we have heard of business activity approaching normalized levels in April. We think the risk to billings in Japan should be offset by the currency benefit on the company’s deferred revenues."
For Q1, FBR expect revenues to exceed our estimate and the consensus of $483 million...Expects pro forma EPS to meet our $0.27 expectation.
For more ratings news on salesforce.com click here and for the rating history of salesforce.com click here.
Shares of salesforce.com closed at $130.08 yesterday.
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