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Salesforce (CRM) to Report Q4 Earnings: What's in the Offing?
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Salesforce (CRM - Free Report) is scheduled to release fourth-quarter fiscal 2022 results on Mar 1.
For the fiscal fourth quarter, the company projects total revenues between $7.224 billion and $7.234 billion. Also, non-GAAP earnings are expected between 72 cents and 73 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $7.23 billion, indicating an increase of 24.3% from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unrevised at 73 cents per share for the past 60 days. The bottom line is expected to have decreased 29.8% year over year.
Salesforce’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 44.2%.
Let’s see how things have shaped up before this announcement.
Salesforce’s fourth-quarter performance is likely to have benefited from the robust demand environment as customers have been undergoing a major digital transformation. The customer relationship management software provider’s focus on introducing more aligned products per customer needs is expected to have boosted its top line in the quarter under review.
The company’s quarterly performance is also likely to have gained from its firm focus on building and expanding relationships with the leading brands across industries and geographies. Also, significant growth opportunities in the public sector are expected to have been a tailwind during the quarter under review.
Acquisitions of the likes of Slack, Mobify and Vlocity are anticipated to have aided CRM’s top line during the to-be-reported quarter.
Salesforce’s ability to offer integrated solutions for customers’ business problems is likely to have been a key growth driver. The firm’s products like Trailhead and myTrailhead are helping companies through their transformation processes along with an increasing business scale with modern technology.
The growth across its four major cloud service offerings, Sales Cloud, Service Cloud, Platform and other plus Marketing & Commerce Cloud, is anticipated to have boosted Salesforce’s subscription and to have supported its revenues, a major catalyst.
However, a decline in software spending by small & medium businesses amid the macroeconomic uncertainty due to the pandemic might have affected Salesforce’s fiscal fourth-quarter performance.
Further, stiff competition from Oracle and Microsoft is a concern along with forex headwinds. Also, increasing investments in International expansions and data centers might have eroded the company’s profitability during the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for CRM this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though Salesforce currently carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, DICK'S Sporting Goods (DKS - Free Report) , American Eagle Outfitters (AEO - Free Report) and Abercrombie & Fitch (ANF - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
DICK'S Sporting Goods currently carries a Zacks Rank #2 and has an Earnings ESP of +4.86%. The company is slated to report its fourth-quarter fiscal 2022 results on Mar 8. DICK'S Sporting Goods’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 104.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DICK'S Sporting Goods’ fourth-quarter earnings stands at $3.39 per share, implying a year-over-year increase of 39.5%. DKS is estimated to report revenues of $3.31 billion, which suggests growth of 6% from the year-ago quarter.
American Eagle Outfitters carries a Zacks Rank #3 and has an Earnings ESP of +2.07%. The company is scheduled to report fourth-quarter fiscal 2022 results on Mar 2. American Eagle Outfitters’ earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 12.7%.
The Zacks Consensus Estimate for AEO’s fourth-quarter earnings is pegged at 36 cents per share, indicating a year-over-year decline of 7.7%. The consensus mark for revenues stands at $1.53 billion, suggesting a year-over-year increase of 18.4%.
Abercrombie & Fitch is slated to report fourth-quarter fiscal 2022 results on Mar 2. The company carries a Zacks Rank #3 and has an Earnings ESP of +1.63% at present. Abercrombie & Fitch’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 112.5%.
For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at $1.33 per share, suggesting a year-over-year decline of 11.3% from the year-ago quarter’s earnings of $1.50. ANF’s quarterly revenues are estimated to increase 5.3% year over year to $1.18 billion.
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Salesforce (CRM) to Report Q4 Earnings: What's in the Offing?
Salesforce (CRM - Free Report) is scheduled to release fourth-quarter fiscal 2022 results on Mar 1.
For the fiscal fourth quarter, the company projects total revenues between $7.224 billion and $7.234 billion. Also, non-GAAP earnings are expected between 72 cents and 73 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $7.23 billion, indicating an increase of 24.3% from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unrevised at 73 cents per share for the past 60 days. The bottom line is expected to have decreased 29.8% year over year.
Salesforce’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 44.2%.
Let’s see how things have shaped up before this announcement.
salesforce.com, inc. Price and EPS Surprise
salesforce.com, inc. price-eps-surprise | salesforce.com, inc. Quote
Factors to Note Ahead of Q4 Earnings
Salesforce’s fourth-quarter performance is likely to have benefited from the robust demand environment as customers have been undergoing a major digital transformation. The customer relationship management software provider’s focus on introducing more aligned products per customer needs is expected to have boosted its top line in the quarter under review.
The company’s quarterly performance is also likely to have gained from its firm focus on building and expanding relationships with the leading brands across industries and geographies. Also, significant growth opportunities in the public sector are expected to have been a tailwind during the quarter under review.
Acquisitions of the likes of Slack, Mobify and Vlocity are anticipated to have aided CRM’s top line during the to-be-reported quarter.
Salesforce’s ability to offer integrated solutions for customers’ business problems is likely to have been a key growth driver. The firm’s products like Trailhead and myTrailhead are helping companies through their transformation processes along with an increasing business scale with modern technology.
The growth across its four major cloud service offerings, Sales Cloud, Service Cloud, Platform and other plus Marketing & Commerce Cloud, is anticipated to have boosted Salesforce’s subscription and to have supported its revenues, a major catalyst.
However, a decline in software spending by small & medium businesses amid the macroeconomic uncertainty due to the pandemic might have affected Salesforce’s fiscal fourth-quarter performance.
Further, stiff competition from Oracle and Microsoft is a concern along with forex headwinds. Also, increasing investments in International expansions and data centers might have eroded the company’s profitability during the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for CRM this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though Salesforce currently carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, DICK'S Sporting Goods (DKS - Free Report) , American Eagle Outfitters (AEO - Free Report) and Abercrombie & Fitch (ANF - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
DICK'S Sporting Goods currently carries a Zacks Rank #2 and has an Earnings ESP of +4.86%. The company is slated to report its fourth-quarter fiscal 2022 results on Mar 8. DICK'S Sporting Goods’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 104.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DICK'S Sporting Goods’ fourth-quarter earnings stands at $3.39 per share, implying a year-over-year increase of 39.5%. DKS is estimated to report revenues of $3.31 billion, which suggests growth of 6% from the year-ago quarter.
American Eagle Outfitters carries a Zacks Rank #3 and has an Earnings ESP of +2.07%. The company is scheduled to report fourth-quarter fiscal 2022 results on Mar 2. American Eagle Outfitters’ earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 12.7%.
The Zacks Consensus Estimate for AEO’s fourth-quarter earnings is pegged at 36 cents per share, indicating a year-over-year decline of 7.7%. The consensus mark for revenues stands at $1.53 billion, suggesting a year-over-year increase of 18.4%.
Abercrombie & Fitch is slated to report fourth-quarter fiscal 2022 results on Mar 2. The company carries a Zacks Rank #3 and has an Earnings ESP of +1.63% at present. Abercrombie & Fitch’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 112.5%.
For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at $1.33 per share, suggesting a year-over-year decline of 11.3% from the year-ago quarter’s earnings of $1.50. ANF’s quarterly revenues are estimated to increase 5.3% year over year to $1.18 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.