Salesforce Reports 11% Rise in Quarterly Revenue, Faces Slowest Growth in 13 Years

Salesforce.com Inc Stock Forecast:

According to 56 analysts, the average target price for Salesforce.com Inc (CRM) over the next 12 months is $201.28. The average analyst rating for CRM is “Strong Buy.” Stock Target Advisor’s analysis of CRM indicates a “Slightly Bullish” outlook, based on 4 positive signals and 3 negative signals. Currently, CRM’s stock price stands at $223.38. Over the past week, the stock price has increased by 6.85%, over the past month by 12.94%, and over the last year by 39.40%.

Salesforce Inc. News:

Salesforce Inc, reported an 11% rise in quarterly revenue, marking its slowest pace of growth in 13 years. The company’s financial results reflected a cautious approach from businesses, as they reduced spending on cloud-based software offerings in the face of an uncertain economic climate.

Salesforce Chief Financial Officer, Amy Weaver, acknowledged the ongoing macroeconomic pressures in the United States, which impacted the company’s performance. Weaver highlighted that demand from key sectors such as financial services and technology experienced a slowdown during the quarter. Despite these challenges, Salesforce managed to surpass analyst expectations, reporting quarterly revenue of $8.25 billion, exceeding the anticipated $8.18 billion.

Salesforce projects revenue of $8.51 billion to $8.53 billion for the current quarter, representing a growth rate of about 10% compared to the previous year. This forecast slightly exceeded analysts’ expectations, who were predicting revenue of $8.49 billion. The company’s ability to maintain double-digit growth, albeit at a slower pace, indicates its resilience in navigating the evolving market dynamics.

On an adjusted basis, Salesforce earned $1.69 per share, surpassing analysts’ estimates of $1.61 per share. This achievement underscores the company’s commitment to profitability and efficient cost management strategies, even in the midst of challenging circumstances.

Analysts Coverage Change:

  • Stifel Nicolaus raised the target for Salesforce Inc. (CRM:NYE) from USD 240 to USD 250.
  • Morgan Stanley & Co. maintained an “Overweight” rating and raised the target from USD 240 to USD 251.
  • Raymond James maintained a “Strong Buy” rating and raised the target from USD 240 to USD 260.
  • Piper Jaffray Companies maintained an “Overweight” rating and raised the target from USD 230 to USD 248.
  • JMP Securities maintained a “Market Outperform” rating and raised the target from USD 250 to USD 275.
  • BMO Capital Markets maintained an “Outperform” rating and raised the target from USD 230 to USD 245.
  • Robert W. Baird & Co. maintained a “Neutral” rating and raised the target from USD 200 to USD 210.
  • Sanford C. Bernstein & Co. maintained an “Underperform” rating and raised the target from USD 145 to USD 153.
  • Oppenheimer & Co. maintained an “Outperform” rating and raised the target from USD 225 to USD 235.
  • TD Cowen maintained an “Outperform” rating and raised the target from USD 200 to USD 210.

 

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