Tech powerhouse Salesforce (CRM:NYE) is gearing up to disclose its financial performance for the second quarter of Fiscal Year 2024 on August 30th after the market’s closure. The anticipation surrounding this event has stirred a diversity of opinions among analysts regarding CRM stock forecast. This has landed a blend of Buy and Hold ratings.
CRM Stock: A Record of Excellence
Before diving into the analyst evaluations, it is noteworthy to highlight Salesforce’s remarkable history of outperforming earnings expectations. Impressively, the company has consistently surpassed estimates for 15 consecutive quarters and showcased its resilient financial state.
CRM Stock Forecast: Anticipating the Figures
The financial stage is set for Salesforce’s earnings release with Wall Street’s estimates of adjusted earnings per share (EPS) at $1.90. This projection lands on the upper rank of the company’s guidance. Hence, marking an impressive surge of nearly 60% compared to the year-ago figure of $1.19 per share.
Simultaneously, revenue estimates are fixed at $8.53 Billion. This figure mirrors the company’s higher outlook and signifies a robust year-over-year growth rate of 10.5%.
CRM Stock Forecast: Analyst Insights
(CRM:NYE) has a current price of USD 211.96. The average analyst target price is USD 229.19 with an upside potential of 8.13%. Salesforce.com Inc. has a market CAP of USD 204.02 Billion. CRM stock boasts a higher market capitalization and has maintained positive cash flow in the last four quarters However, it is overpriced compared to its peers. Moreover, the stock has already achieved a 59.86% gain year-to-date.
Brian White from Monness, Crespi, Hardt & Co. represents a neutral stance. White predicts that the company will likely meet the Q2 revenue projection of $8.65 billion and an EPS estimate of $2.02. Looking ahead, White sees Salesforce poised to capitalize on the digital transformation landscape, leveraging its robust cloud portfolio and streamlined cost structure.
The analysts at Citigroup maintain a neutral rating on the stock and reduce the price from USD 230 to USD 220. The analysts’ consensus views it as slightly bullish and rates it as a “Strong Buy”. Due to Salesforce’s appealing risk-reward balance and its potential for long-term achievements in the evolving market gains positive hopes from some analysts.
Options Trading Insights:
The options market predicts for CRM stock to move within a range of +/-6.7% post-earnings. (CRM:NYE) registered a 4.69% decline following the announcement in the last quarter, marking its smallest quarterly revenue increase since 2010.
The Conclusion:
Salesforce’s impressive history of surpassing earnings predictions highlights its capacity to outshine market expectations. However, analysts are still keeping a watchful eye on the stock. While analysts exhibit a range of short-term projections, the optimism rests on the belief in Salesforce’s growth journey. As the earnings curtain rises, investors stand poised to witness the fiscal performance and future potential of this tech giant.
