Salesforce (NYSE:CRM) Releases Q3 2023 Earnings Guidance

Salesforce (NYSE:CRMGet Rating) issued an update on its third quarter 2023 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of $1.20-$1.21 for the period, compared to the consensus estimate of $1.29. The company issued revenue guidance of $7.82 billion-$7.83 billion, compared to the consensus revenue estimate of $8.07 billion. Salesforce also updated its FY 2023 guidance to $4.71-$4.73 EPS.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on CRM shares. Mizuho dropped their price objective on Salesforce from $245.00 to $235.00 and set a buy rating on the stock in a research note on Thursday, August 25th. Oppenheimer reissued a buy rating and set a $240.00 target price on shares of Salesforce in a report on Thursday. Raymond James reduced their price objective on Salesforce from $250.00 to $225.00 in a research note on Thursday, August 25th. Wolfe Research reduced their price objective on Salesforce from $200.00 to $180.00 and set an outperform rating on the stock in a research note on Friday. Finally, Canaccord Genuity Group dropped their target price on Salesforce from $260.00 to $215.00 and set a buy rating for the company in a research report on Thursday, August 25th. Five equities research analysts have rated the stock with a hold rating, thirty-two have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Salesforce has an average rating of Moderate Buy and a consensus target price of $242.12.

Salesforce Trading Down 2.7 %

Shares of CRM traded down $3.98 during mid-day trading on Friday, reaching $146.17. 364,823 shares of the company were exchanged, compared to its average volume of 7,754,920. The stock has a market capitalization of $146.17 billion, a PE ratio of 270.80, a PEG ratio of 4.01 and a beta of 1.12. The business has a 50 day simple moving average of $171.85 and a two-hundred day simple moving average of $178.69. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.06 and a current ratio of 1.06. Salesforce has a 52 week low of $147.51 and a 52 week high of $311.75.

Salesforce (NYSE:CRMGet Rating) last issued its quarterly earnings results on Wednesday, August 24th. The CRM provider reported $0.52 EPS for the quarter, topping analysts’ consensus estimates of $0.37 by $0.15. Salesforce had a return on equity of 3.32% and a net margin of 1.83%. The business had revenue of $7.72 billion for the quarter, compared to analyst estimates of $7.70 billion. During the same period last year, the company posted $0.87 earnings per share. Salesforce’s quarterly revenue was up 21.8% compared to the same quarter last year. On average, analysts predict that Salesforce will post 2.2 earnings per share for the current fiscal year.

Salesforce declared that its board has approved a share repurchase plan on Wednesday, August 24th that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the CRM provider to reacquire up to 6.4% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board of directors believes its stock is undervalued.

Insider Transactions at Salesforce

In other Salesforce news, CEO Marc Benioff sold 2,300 shares of the stock in a transaction on Wednesday, September 21st. The stock was sold at an average price of $150.29, for a total transaction of $345,667.00. Following the sale, the chief executive officer now directly owns 27,761,368 shares in the company, valued at approximately $4,172,255,996.72. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. In other Salesforce news, CFO Amy E. Weaver sold 516 shares of Salesforce stock in a transaction that occurred on Monday, July 25th. The stock was sold at an average price of $177.86, for a total value of $91,775.76. Following the sale, the chief financial officer now owns 30,486 shares of the company’s stock, valued at approximately $5,422,239.96. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Marc Benioff sold 2,300 shares of Salesforce stock in a transaction that occurred on Wednesday, September 21st. The stock was sold at an average price of $150.29, for a total value of $345,667.00. Following the completion of the transaction, the chief executive officer now owns 27,761,368 shares of the company’s stock, valued at approximately $4,172,255,996.72. The disclosure for this sale can be found here. In the last quarter, insiders sold 71,246 shares of company stock valued at $12,337,917. Corporate insiders own 3.60% of the company’s stock.

Hedge Funds Weigh In On Salesforce

A number of institutional investors and hedge funds have recently modified their holdings of the stock. XTX Topco Ltd lifted its holdings in shares of Salesforce by 15.7% in the 1st quarter. XTX Topco Ltd now owns 2,617 shares of the CRM provider’s stock worth $556,000 after buying an additional 356 shares during the period. Eudaimonia Partners LLC purchased a new stake in shares of Salesforce in the first quarter worth about $503,000. Ergoteles LLC purchased a new stake in shares of Salesforce in the first quarter worth about $455,000. Golden State Equity Partners boosted its position in Salesforce by 50.0% during the first quarter. Golden State Equity Partners now owns 2,004 shares of the CRM provider’s stock worth $425,000 after purchasing an additional 668 shares in the last quarter. Finally, Interchange Capital Partners LLC purchased a new position in Salesforce during the first quarter worth approximately $365,000. Hedge funds and other institutional investors own 77.02% of the company’s stock.

About Salesforce

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Salesforce, Inc provides customer relationship management technology that brings companies and customers together worldwide. Its Customer 360 platform empowers its customers to work together to deliver connected experiences for their customers. The company's service offerings include Sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and relationship intelligence, and deliver quotes, contracts, and invoices; and Service that enables companies to deliver trusted and highly personalized customer service and support at scale.

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Earnings History and Estimates for Salesforce (NYSE:CRM)

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