Salesforce Stock Falls As Full-Year 2022 Profit Guidance Misses Amid Slack Acquisition
Salesforce stock fell in extended trading Thursday as fourth-quarter earnings and revenue for fiscal 2021 topped analyst estimates but full-year fiscal 2022 profit guidance came in below expectations.
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Excluding investment gains of 22 cents per share, Salesforce earnings rose 24% from a year earlier to 82 cents a share on an adjusted basis. During the period that ended Jan. 31, revenue climbed 20% to $5.82 billion.
A year earlier, Salesforce earnings were 66 cents a share on sales of $4.85 billion. Analysts expected Salesforce to report earnings of 75 cents on sales of $5.68 billion.
Salesforce stock fell 2.9% to 224.36 in extended trading on the stock market today. In Thursday’s regular session, Salesforce stock shed 3.9%
Salesforce Stock: Guidance Tops Expectations Amid Slack Deal
The enterprise software maker said current remaining performance obligations, or CRPO bookings, ended 2020 at $18 billion, up 20%, vs. estimates of $17.4 billion. billion. Meanwhile, CRPO bookings are an aggregate of deferred revenue and order backlog.
For the current quarter ending in April, the enterprise software maker expects revenue of $5.88 billion at the midpoint of guidance vs. estimates of $5.72 billion.
The company forecast earnings in a range of 88 cents to 89 cents a share. Analysts had projected a profit of 76 cents a share.
Salesforce Earnings Guidance Below Estimates
For full-year fiscal 2022, Salesforce projected EPS of $3.40, below estimates of $3.46.
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.
Salesforce in December agreed to buy Slack Technologies (WORK) for $27.7 billion in cash and stock. Slack sells workplace collaboration software. The deal, expected to close in the second quarter of fiscal 2022, should boost Salesforce vs. Microsoft (MSFT), analysts say.
Heading into the Salesforce earnings report, the stock owned a Relative Strength Rating of only 34 out of a possible 99. According to IBD Marketsmith analysis, Salesforce stock is not a buy.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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