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Salesforce Earnings Fall But Come In Ahead Of Estimates

Salesforce (CRM) on Tuesday reported April-quarter earnings that fell from a year earlier but topped Wall Street targets. Revenue also beat analyst estimates. The enterprise software maker’s own outlook for CRM stock came in below expectations but may have been better than feared.

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Including Slack Technologies, acquired in 2021, Salesforce earnings fell 19% to 98 cents on an adjusted basis. San Francisco-based Salesforce said revenue climbed 24% to $7.41 billion.

A year earlier, Salesforce reported profit of $1.21 a share, including investment gains, on sales of $5.96 billion.

CRM stock analysts expected Salesforce to report earnings of 94 cents a share on sales of $7.38 billion.

The enterprise software maker said current remaining performance obligations (or CRPO) bookings rose 24% to $21.5 billion, in line with estimates. CRPO bookings are an aggregate of deferred revenue and order backlog.

CRM Stock: July Quarter Guidance Light

Salesforce reported first-quarter earnings after the market close. CRM stock rose 5.4% to 168.90 in extended trading on the stock market today. Salesforce stock has retreated about 35% in 2022, as software growth stocks generally struggle.

For the current quarter ending in July, the company forecast earnings per share in a range of $1.01 to $1.02, vs. estimates of $1.14 a share for CRM stock. Also, the software maker expects revenue of $7.695 billion at the midpoint of guidance, vs. estimates of $7.77 billion.

Some analysts were cautious about Salesforce guidance amid rising interest rates and a possible economic slowdown.

Salesforce sells software under a subscription model. Its software helps businesses organize and handle sales operations and customer relationships. The company has expanded into marketing, customer services and e-commerce.

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns for CRM stock and others is one key to the investment guidelines.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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