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Salesforce.com (CRM) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates

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Wall Street analysts forecast that Salesforce.com (CRM - Free Report) will report quarterly earnings of $2.54 per share in its upcoming release, pointing to a year-over-year increase of 4.1%. It is anticipated that revenues will amount to $9.74 billion, exhibiting an increase of 6.6% compared to the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

With that in mind, let's delve into the average projections of some Salesforce.com metrics that are commonly tracked and projected by analysts on Wall Street.

The average prediction of analysts places 'Revenue- Professional services and other' at $515.31 million. The estimate points to a change of -6% from the year-ago quarter.

According to the collective judgment of analysts, 'Revenue- Subscription and support' should come in at $9.22 billion. The estimate points to a change of +7.4% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Revenue- Subscription and support- Service' of $2.35 billion. The estimate points to a change of +7.6% from the year-ago quarter.

The consensus estimate for 'Revenue- Subscription and support- Marketing and Commerce' stands at $1.35 billion. The estimate suggests a change of +5.2% year over year.

Analysts expect 'Revenue- Subscription and support- Platform and Other' to come in at $1.83 billion. The estimate indicates a year-over-year change of +6.6%.

Analysts forecast 'Revenue- Subscription and support- Sales' to reach $2.14 billion. The estimate indicates a change of +7.1% from the prior-year quarter.

Analysts' assessment points toward 'Geographic Revenue- Americas' reaching $6.63 billion. The estimate points to a change of +9.4% from the year-ago quarter.

The consensus among analysts is that 'Geographic Revenue- Asia Pacific' will reach $982.26 million. The estimate indicates a year-over-year change of +6.1%.

The combined assessment of analysts suggests that 'Geographic Revenue- Europe' will likely reach $2.11 billion. The estimate points to a change of -1.4% from the year-ago quarter.

Analysts predict that the 'Remaining performance obligation (RPO) - Current' will reach $29.00 billion. The estimate compares to the year-ago value of $26.4 billion.

It is projected by analysts that the 'Remaining performance obligation (RPO) - Total' will reach $60.43 billion. Compared to the current estimate, the company reported $53.9 billion in the same quarter of the previous year.

Based on the collective assessment of analysts, 'Remaining performance obligation (RPO) - Noncurrent' should arrive at $31.44 billion. The estimate is in contrast to the year-ago figure of $27.5 billion.

View all Key Company Metrics for Salesforce.com here>>>

Shares of Salesforce.com have demonstrated returns of +7.1% over the past month compared to the Zacks S&P 500 composite's +10.7% change. With a Zacks Rank #3 (Hold), CRM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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