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Digitization, Buyout to Aid Salesforce (CRM) in Q4 Earnings
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Salesforce (CRM - Free Report) is scheduled to report fourth-quarter fiscal 2022 results on Mar 1. The company’s quarterly results are likely to reflect the benefits from the robust demand environment as organizations are undergoing a major digital transformation.
The increased adoption of cloud-based solutions amid business disruptions caused by the pandemic is expected to have driven demand for Salesforce’s products. Its ability to provide an integrated solution for customers’ business problems is expected to have been the key driver.
Click here to know how CRM’s overall fiscal fourth-quarter results are likely to be.
The rapid adoption of software-as-a-service-based platforms amid the ongoing work-from-home and online learning trend is expected to have spurred demand for Salesforce’s cloud-based solutions. Salesforce’s diverse cloud offerings are likely to have helped expand its clientele, fueling the top line.
Also, Salesforce’s initiatives to capitalize on overseas demand for cloud-based applications are anticipated to have bolstered the top line during the period in discussion. Further, the improved customer experience is anticipated to have aided the cloud segment. Also, CRM’s focus on AI and the substantial progress in its Einstein Analytics platform make it optimistic about the upcoming quarterly results.
The company’s Customer 360 Truth platform, which helps connect the data from sales, service, marketing, commerce and build a single Salesforce ID for each customer, is likely to have boosted its performance.
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. Also, increasing investments in International expansions and data centers might have eroded the company’s profitability during the to-be-reported quarter.
Acquisitions & Partnerships – Growth Drivers
Salesforce’s strategic acquisitions over the past 12 months are anticipated to have brought incremental revenues in the quarter under review. On Jul 21, 2021, CRM announced completing the buyout of Slack, which has positioned it as a leader in the enterprise team collaboration solution space.
Salesforce bought Acumen Solutions, a McLean, VA-based professional services firm, in February 2021. Salesforce anticipates revenues from the newly acquired Slack and Acumen businesses of approximately $530 million and $200 million, respectively, in fiscal 2022.
Additionally, Salesforce’s focus on building partnerships is anticipated to have fueled the top line. These strategic partnerships have not only helped it grab new deals but also expanded the firm’s operations internationally.
Further, partnership agreements with the likes of Apple, Amazon, Google parent Alphabet, Microsoft, HP, Dell, International Business Machines and others for firms’ cloud services are likely to have aided Salesforce’s performance during the fiscal fourth quarter.
Zacks Rank & Other Stocks to Consider
Salesforce currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised upward by 2 cents to 89 cents per share over the past 30 days. For 2022, earnings estimates have moved north by 10.8% to $3.99 per share in the past 30 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have surged 74.9% in the past year.
The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 3.6% to $1.43 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 5.9% to $6.15 per share in the past 30 days.
Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 29% in the trailing 12 months.
The Zacks Consensus Estimate for Analog Devices’ second-quarter fiscal 2022 earnings has been revised upward by 7 cents to $2.08 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 27 cents to $8.32 per share in the past 30 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have increased 2.3% over the past 12 months.
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Digitization, Buyout to Aid Salesforce (CRM) in Q4 Earnings
Salesforce (CRM - Free Report) is scheduled to report fourth-quarter fiscal 2022 results on Mar 1. The company’s quarterly results are likely to reflect the benefits from the robust demand environment as organizations are undergoing a major digital transformation.
The increased adoption of cloud-based solutions amid business disruptions caused by the pandemic is expected to have driven demand for Salesforce’s products. Its ability to provide an integrated solution for customers’ business problems is expected to have been the key driver.
Click here to know how CRM’s overall fiscal fourth-quarter results are likely to be.
salesforce.com, inc. Price and EPS Surprise
salesforce.com, inc. price-eps-surprise | salesforce.com, inc. Quote
Top-Line Growth on Rapid Cloud Adoption
The rapid adoption of software-as-a-service-based platforms amid the ongoing work-from-home and online learning trend is expected to have spurred demand for Salesforce’s cloud-based solutions. Salesforce’s diverse cloud offerings are likely to have helped expand its clientele, fueling the top line.
Also, Salesforce’s initiatives to capitalize on overseas demand for cloud-based applications are anticipated to have bolstered the top line during the period in discussion. Further, the improved customer experience is anticipated to have aided the cloud segment. Also, CRM’s focus on AI and the substantial progress in its Einstein Analytics platform make it optimistic about the upcoming quarterly results.
The company’s Customer 360 Truth platform, which helps connect the data from sales, service, marketing, commerce and build a single Salesforce ID for each customer, is likely to have boosted its performance.
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. Also, increasing investments in International expansions and data centers might have eroded the company’s profitability during the to-be-reported quarter.
Acquisitions & Partnerships – Growth Drivers
Salesforce’s strategic acquisitions over the past 12 months are anticipated to have brought incremental revenues in the quarter under review. On Jul 21, 2021, CRM announced completing the buyout of Slack, which has positioned it as a leader in the enterprise team collaboration solution space.
Salesforce bought Acumen Solutions, a McLean, VA-based professional services firm, in February 2021. Salesforce anticipates revenues from the newly acquired Slack and Acumen businesses of approximately $530 million and $200 million, respectively, in fiscal 2022.
Additionally, Salesforce’s focus on building partnerships is anticipated to have fueled the top line. These strategic partnerships have not only helped it grab new deals but also expanded the firm’s operations internationally.
Further, partnership agreements with the likes of Apple, Amazon, Google parent Alphabet, Microsoft, HP, Dell, International Business Machines and others for firms’ cloud services are likely to have aided Salesforce’s performance during the fiscal fourth quarter.
Zacks Rank & Other Stocks to Consider
Salesforce currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology sector include Axcelis Technologies (ACLS - Free Report) , Apple (AAPL - Free Report) and Analog Devices (ADI - Free Report) . While Axcelis sports a Zacks Rank #1, Apple and Analog Devices each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised upward by 2 cents to 89 cents per share over the past 30 days. For 2022, earnings estimates have moved north by 10.8% to $3.99 per share in the past 30 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have surged 74.9% in the past year.
The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 3.6% to $1.43 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 5.9% to $6.15 per share in the past 30 days.
Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 29% in the trailing 12 months.
The Zacks Consensus Estimate for Analog Devices’ second-quarter fiscal 2022 earnings has been revised upward by 7 cents to $2.08 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 27 cents to $8.32 per share in the past 30 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have increased 2.3% over the past 12 months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.