Salesforce ( CRM Quick Quote CRM - Free Report) is slated to report third-quarter fiscal 2023 results on Nov 30. This cloud-based software maker’s third-quarter performance is likely to have benefited from the robust demand environment as customers are undergoing a major digital transformation. Click here to know how CRM’s overall fiscal third-quarter results are likely to be. Accelerated Digitalization to Boost Q3 Revenues
The rapid adoption of software-as-a-service-based platforms amid the ongoing hybrid working 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.
Salesforce’s ability to provide an integrated solution for customers’ business problems is expected to have been the key driver. The company’s Customer 360 Truth platform, which helps connect the data from sales, service, marketing and commerce and build a single Salesforce ID for each customer, is likely to have boosted its performance. Also, its focus on AI and the substantial progress in its Einstein Analytics platform make it optimistic about the upcoming quarterly results.
Salesforce’s initiatives to capitalize on the 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.
However, a decline in software spending by small & medium businesses amid the macroeconomic uncertainty due to the pandemic and the ongoing Russia-Ukraine war might have affected Salesforce’s fiscal third-quarter performance. Also, the increasing investments in international expansions and data centers might have eroded the company’s profitability during the to-be-reported quarter.
Zacks Rank & Stocks to Consider
Salesforce currently carries a Zacks Rank #3 (Hold). Shares of CRM have declined 39.6% year to date (“YTD”).
Some better-ranked stocks from the broader technology sector are
Celestica ( CLS Quick Quote CLS - Free Report) , Zscaler ( ZS Quick Quote ZS - Free Report) and Coupa Software ( COUP Quick Quote COUP - Free Report) . Celestica sports a Zacks Rank #1 (Strong Buy) at present, while Zscaler and Coupa 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 Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 60 days. For 2022, earnings estimates have moved up 9.4% to $1.86 per share in the past 30 days.
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