BNGO - CRM Stock Gains 13% on Salesforce Earnings
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Salesforce (NYSE:CRM) stock is jumping 13% after the company’s fiscal first-quarter results surpassed analysts’ average estimates. The company, which develops customer relationship management tools, also raised its full-year earnings guidance. However, it slightly reduced its 2022 revenue outlook.
CRM Stock Up Following Q1 Results
Salesforce reported Q1 earnings per share (EPS) of 98 cents, excluding certain items, versus analysts’ average estimate of 94 cents. The company’s sales jumped 24% year-over-year to $7.41 billion, slightly above the mean outlook.
On the guidance front, Salesforce slightly trimmed its full-year, top-line outlook to between $31.7 million and $31.8 billion, from between $32 billion and $32.1 billion.
The company’s co-CEO, Marc Benioff, stated that the guidance reduction was caused by currency fluctuations. However, the company increased its fiscal 2023 EPS guidance, excluding certain items, to $4.74-$4.76 from $4.62 -$4.64. And despite the high inflation rate, the software maker expects its FY23 operating margin, excluding certain items, to be roughly 20.4%, versus its previous guidance of roughly 20%.
Upbeat Comments
Benioff reported that the company was benefiting from “a whirlwind” of deals. The company’s other co-CEO, Bret Taylor, said, “We see strong demand across our clouds and industry. Our products are more relevant than ever. The digital transformation trends that accelerated during the pandemic are moving full steam ahead.”
Despite today’s rally, CRM stock has still tumbled nearly 30% so far this year.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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