We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Rapid Cloud Migration to Aid Salesforce's (CRM) Q4 Earnings
Read MoreHide Full Article
Salesforce (CRM - Free Report) is slated to report fourth-quarter fiscal 2024 results on Feb 28. The cloud-based software maker’s fourth-quarter performance is expected to have benefited from the positive demand environment as customers are continuing with cloud migration and digital transformation initiatives despite the current macroeconomic headwinds.
Click here to know how CRM’s overall fiscal fourth-quarter results are likely to be.
Digitalization Initiatives to Boost Q4 Revenues
The growing demand for generative artificial intelligence (AI)-enabled cloud-based solutions is anticipated to have aided top-line growth in the fourth quarter. Salesforce 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 us optimistic about the upcoming quarterly results.
Moreover, 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. The enterprise software maker’s diverse cloud offerings are likely to have helped expand its clientele, fueling the top line.
The company’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.
However, a decline in software spending by small and medium businesses amid ongoing macroeconomic headwinds and geopolitical issues may have affected Salesforce’s fiscal third-quarter performance. CRM had previously stated that customers are scrutinizing every deal, and it is witnessing an elongated deal cycle and deal compression. Our estimate for the Subscription and Support segment’s fourth-quarter revenues is pegged at approximately $8.53 billion.
Salesforce had also revealed earlier that its professional service business has been seeing less demand for multi-year transformation deals as well as project delays in some cases. Our estimate for the Professional Services segment’s fourth-quarter revenues is pegged at approximately $666.1 million.
Furthermore, stiff competition from Oracle and Microsoft is a concern, along with forex headwinds.
Zacks Rank & Stocks to Consider
Salesforce currently carries a Zacks Rank #3 (Hold). Shares of CRM have soared 11.2% year to date (YTD).
The Zacks Consensus Estimate for CrowdStrike’s fiscal 2024 earnings has been revised a penny upward to $2.95 per share in the past 30 days, suggesting year-over-year growth of 91.6%. The long-term estimated earnings growth rate for the stock stands at 36.1%. Shares of CRWD have jumped 22% YTD.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 3 cents to $4.06 per share in the past seven days, which calls for an increase of 40% on a year-over-year basis. The long-term expected earnings growth rate for the stock is pegged at 28.1%. AMZN stock has returned 15.1% YTD.
The consensus mark for Meta’s 2024 earnings has been revised upward by 12 cents to $19.78 per share over the past seven days, indicating a 33% increase from 2023. It has a long-term earnings growth expectation of 19.5%. In the trailing 12 months, META stock has surged 59.1% YTD.
Image: Bigstock
Rapid Cloud Migration to Aid Salesforce's (CRM) Q4 Earnings
Salesforce (CRM - Free Report) is slated to report fourth-quarter fiscal 2024 results on Feb 28. The cloud-based software maker’s fourth-quarter performance is expected to have benefited from the positive demand environment as customers are continuing with cloud migration and digital transformation initiatives despite the current macroeconomic headwinds.
Click here to know how CRM’s overall fiscal fourth-quarter results are likely to be.
Digitalization Initiatives to Boost Q4 Revenues
The growing demand for generative artificial intelligence (AI)-enabled cloud-based solutions is anticipated to have aided top-line growth in the fourth quarter. Salesforce 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 us optimistic about the upcoming quarterly results.
Salesforce Inc. Price and EPS Surprise
Salesforce Inc. price-eps-surprise | Salesforce Inc. Quote
Moreover, 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. The enterprise software maker’s diverse cloud offerings are likely to have helped expand its clientele, fueling the top line.
The company’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.
However, a decline in software spending by small and medium businesses amid ongoing macroeconomic headwinds and geopolitical issues may have affected Salesforce’s fiscal third-quarter performance. CRM had previously stated that customers are scrutinizing every deal, and it is witnessing an elongated deal cycle and deal compression. Our estimate for the Subscription and Support segment’s fourth-quarter revenues is pegged at approximately $8.53 billion.
Salesforce had also revealed earlier that its professional service business has been seeing less demand for multi-year transformation deals as well as project delays in some cases. Our estimate for the Professional Services segment’s fourth-quarter revenues is pegged at approximately $666.1 million.
Furthermore, stiff competition from Oracle and Microsoft is a concern, along with forex headwinds.
Zacks Rank & Stocks to Consider
Salesforce currently carries a Zacks Rank #3 (Hold). Shares of CRM have soared 11.2% year to date (YTD).
Some better-ranked stocks from the broader technology sector are CrowdStrike Holdings (CRWD - Free Report) , Amazon.com (AMZN - Free Report) and Meta Platforms (META - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CrowdStrike’s fiscal 2024 earnings has been revised a penny upward to $2.95 per share in the past 30 days, suggesting year-over-year growth of 91.6%. The long-term estimated earnings growth rate for the stock stands at 36.1%. Shares of CRWD have jumped 22% YTD.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 3 cents to $4.06 per share in the past seven days, which calls for an increase of 40% on a year-over-year basis. The long-term expected earnings growth rate for the stock is pegged at 28.1%. AMZN stock has returned 15.1% YTD.
The consensus mark for Meta’s 2024 earnings has been revised upward by 12 cents to $19.78 per share over the past seven days, indicating a 33% increase from 2023. It has a long-term earnings growth expectation of 19.5%. In the trailing 12 months, META stock has surged 59.1% YTD.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.