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Digital Transformation to Aid Salesforce's (CRM) Q2 Earnings
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Salesforce (CRM - Free Report) is scheduled to report second-quarter fiscal 2024 results on Aug 30. The cloud-based software maker’s second-quarter performance is likely to have benefited from the positive demand environment as customers are continuing with digital transformation initiatives despite the current macroeconomic headwinds.
Click here to know how CRM’s overall fiscal second-quarter results are likely to be.
Digital Transformation to Aid Q2 Revenues
The rapid adoption of software-as-a-service-based platforms amid the ongoing hybrid working trend is expected to have spurred the 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 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. Additionally, Salesforce’s ability to provide an integrated solution for customers’ business problems is expected to have been the key driver.
Moreover, the growing demand for generative artificial intelligence (AI)-enabled cloud-based solutions is anticipated to have aided top-line growth in the second quarter. The company is currently focusing on incorporating generative AI tools across its products as it looks to keep its business ahead of rivals. Its focus on AI and the substantial progress in its Einstein Analytics platform make it optimistic about the upcoming quarterly results.
However, a decline in software spending by small and medium businesses amid ongoing macroeconomic headwinds and geopolitical issues may have affected Salesforce’s fiscal second-quarter performance. On the first-quarter fiscal 2024 conference call, CRM had stated that customers are scrutinizing every deal, and it is witnessing an elongated deal cycle and deal compression.
Salesforce also revealed that its professional service business has been seeing less demand for multi-year transformation deals as well as project delays in some cases. Furthermore, stiff competition from Oracle and Microsoft is a concern, along with forex headwinds.
Zacks Rank & Other Stocks to Consider
Salesforce currently carries a Zacks Rank #2 (Buy). Shares of CRM have soared 59.7% year to date (YTD).
The Zacks Consensus Estimate for NVIDIA's third-quarter fiscal 2024 earnings has been revised upward by 21 cents to $2.46 per share in the past seven days. For fiscal 2024, earnings estimates have increased by 35 cents to $8.19 per share in the past seven days.
NVIDIA’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, the average surprise being 9.8%. Shares of NVDA have surged 220.5% YTD.
The Zacks Consensus Estimate for Manhattan Associates’ third-quarter 2023 earnings has been revised 5 cents northward to 77 cents per share in the past 60 days. For 2023, earnings estimates have moved 22 cents upward to $3.09 per share in the past 60 days.
Manhattan Associates’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 31.6%. Shares of MANH have rallied 59.7% YTD.
The Zacks Consensus Estimate for CrowdStrike's second-quarter fiscal 2024 earnings has remained unchanged at 56 cents per share in the past 60 days. For fiscal 2024, earnings estimates have remained unchanged at $2.39 per share in the past 60 days.
CrowdStrike's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 19.2%. Shares of CRWD have risen 36.8% YTD.
Image: Bigstock
Digital Transformation to Aid Salesforce's (CRM) Q2 Earnings
Salesforce (CRM - Free Report) is scheduled to report second-quarter fiscal 2024 results on Aug 30. The cloud-based software maker’s second-quarter performance is likely to have benefited from the positive demand environment as customers are continuing with digital transformation initiatives despite the current macroeconomic headwinds.
Click here to know how CRM’s overall fiscal second-quarter results are likely to be.
Digital Transformation to Aid Q2 Revenues
The rapid adoption of software-as-a-service-based platforms amid the ongoing hybrid working trend is expected to have spurred the 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 Inc. Price and EPS Surprise
Salesforce Inc. price-eps-surprise | Salesforce Inc. Quote
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. Additionally, Salesforce’s ability to provide an integrated solution for customers’ business problems is expected to have been the key driver.
Moreover, the growing demand for generative artificial intelligence (AI)-enabled cloud-based solutions is anticipated to have aided top-line growth in the second quarter. The company is currently focusing on incorporating generative AI tools across its products as it looks to keep its business ahead of rivals. Its focus on AI and the substantial progress in its Einstein Analytics platform make it optimistic about the upcoming quarterly results.
However, a decline in software spending by small and medium businesses amid ongoing macroeconomic headwinds and geopolitical issues may have affected Salesforce’s fiscal second-quarter performance. On the first-quarter fiscal 2024 conference call, CRM had stated that customers are scrutinizing every deal, and it is witnessing an elongated deal cycle and deal compression.
Salesforce also revealed that its professional service business has been seeing less demand for multi-year transformation deals as well as project delays in some cases. Furthermore, stiff competition from Oracle and Microsoft is a concern, along with forex headwinds.
Zacks Rank & Other Stocks to Consider
Salesforce currently carries a Zacks Rank #2 (Buy). Shares of CRM have soared 59.7% year to date (YTD).
Some other top-ranked stocks from the broader technology sector are NVIDIA (NVDA - Free Report) , Manhattan Associates (MANH - Free Report) and CrowdStrike (CRWD - Free Report) . NVIDIA and Manhattan Associates each sport a Zacks Rank #1 (Strong Buy), while CrowdStrike carries a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA's third-quarter fiscal 2024 earnings has been revised upward by 21 cents to $2.46 per share in the past seven days. For fiscal 2024, earnings estimates have increased by 35 cents to $8.19 per share in the past seven days.
NVIDIA’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, the average surprise being 9.8%. Shares of NVDA have surged 220.5% YTD.
The Zacks Consensus Estimate for Manhattan Associates’ third-quarter 2023 earnings has been revised 5 cents northward to 77 cents per share in the past 60 days. For 2023, earnings estimates have moved 22 cents upward to $3.09 per share in the past 60 days.
Manhattan Associates’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 31.6%. Shares of MANH have rallied 59.7% YTD.
The Zacks Consensus Estimate for CrowdStrike's second-quarter fiscal 2024 earnings has remained unchanged at 56 cents per share in the past 60 days. For fiscal 2024, earnings estimates have remained unchanged at $2.39 per share in the past 60 days.
CrowdStrike's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 19.2%. Shares of CRWD have risen 36.8% YTD.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.