Salesforce reported EPS of 1.69 for the first quarter of fiscal 2024. The SAP competitor thus exceeded analyst expectations of USD 1.61 per share. In the prior-year quarter, earnings per share were $0.98 on the books.
In terms of sales, 8.25 billion US dollars were generated after 7.41 billion US dollars in the same quarter of the previous year. Here the forecasts of the experts were 8.18 billion US dollars. Bottom line, profits jumped from $28 million to $199 million.
At the same time, the management raised its margin forecast for the current financial year until the end of January 2024: Instead of 27 percent, around 28 percent of sales should now remain as adjusted operating profit. Revenue is expected to increase by around 10 percent to between $34.5 and $34.7 billion.
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However, Salesforce shares fell by around two percent in after-hours trading in the US. The company’s costs in the past quarter were higher than analysts had expected.
Salesforce specializes in company software for customer management and offers, among other things, the office communication service Slack that has been purchased.
JPMorgan leaves Salesforce “Overweight” – target $230
JPMorgan left Salesforce at “Overweight” with a price target of $230 after quarterly results. The stock is also on the US bank’s Analyst Focus List. The software company is on track to achieve a 10 percent sales growth target and has done surprisingly well in terms of operating margin and cash flow, analyst Mark Murphy wrote in a study published on Thursday. In addition, Salesforce has raised the targets for the latter indicators for 2024. Although the difficult economic environment is manageable, it limits further sales potential. Meanwhile, the company could benefit greatly from the AI trend.
Salesforce shares, which are listed on the NYSE, are temporarily down 5.79 percent at $210.45 in after-hours trading.
Editorial office finanzen.net / dpa-AFX
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