Shares of Salesforce.com Inc. fluctuated between gains and losses in the extended session on Wednesday, after the Customer Relationship Management software company's quarterly results exceeded Wall Street estimates, but the third quarter outlook failed.
CRM, + 1.18%
equities had recently dropped 1.8% in hours after the regular session rose 1.2% to $ 154.80. At the close of trading, equities rose more than 51%, compared to a plus of 9% in the S & P 500 Index
SPX, + 0.57%
and a gain of more than 1
COMP, + 0.99%
The Company Reports Net Income of $ 299 Million, or 39 Cents a Share, for the Second Quarter, Compared to $ 46 Million, or 6 Cents a Share, for the Year-Time Adjusted earnings were 71 cents per share. According to the 38 analysts interviewed by FactSet, Salesforce should achieve an adjusted profit of 47 cents per share. Estimate, a software platform that uses crowdsourcing from hedge fund managers, brokers, buy-side analysts, and others, has called for a return of 50 cents a share.
The earnings report on Wednesday comes just weeks before Salesforce's annual Dreamforce conference plans to take over downtown San Francisco from September 24 through September 28. Salesforce's revenue increased 27% to nearly $ 3.3 billion in the second quarter, with excellent results in all of our cloud, industry and geographic regions, "said Keith Block, Salesforce co-CEO Statement. "With this strong quarter, we are well on the way to our next milestone of $ 23 billion in fiscal 2010."
Sales increased from $ 2.58 billion in the prior year period to $ 3.28 billion. Wall Street expects salesforce sales of $ 3.23 billion from Salesforce, according to FactSet's 35 analysts. Estimated Expected Sales of $ 3.26 Billion
Subscriptions and support revenues increased 28% year-on-year to $ 3.06 billion, while analysts expected $ 3.01 billion. Professional Services and other revenues increased 14% to $ 221 million, compared to Wall Street's $ 221.3 million expected. Salesforce estimated adjusted earnings for the year from 49 cents to 50 cents per share to $ 3.37 billion in the third quarter and $ 2.50 to $ 2.52 for revenue of $ 13.13 billion to $ 13 , 18 billion for the year.
Analysts expect the third quarter earnings of 53 cents per share on revenue of $ 3.35 billion and a profit of $ 2.31 billion for sales of $ 13.13 billion.