Cloud software giant Salesforce (CRM: NYE) reported strong financial results for its Q4, exceeding analyst expectations and sending shockwaves through the market with the announcement of its first-ever dividend.
Key Insights from Salesforce’s Q4 Earnings:
Following are the major highlights from Salesforce’s Q4 Report:
- Earnings per share (EPS): $2.29, surpassing the estimated $2.27.
- Revenue: $9.29 billion, exceeding the projected $9.22 billion.
- Current remaining performance obligation (cPRO): 12% year-over-year increase to $27.6 billion, indicating a healthy future revenue pipeline.
Stock Target Advisor’s Take on Salesforce:
Stock Target Advisor gives Salesforce a Buy rating. Their stock analysis based on multiple signals, including superior risk-adjusted returns, positive cash flow, and earnings growth, and high market capitalization, sways towards a “Bullish” stance.
On the contrary, they also highlight some downside risks, notably that Salesforce seems overpriced when taking into account earnings, cash flow, and free cash flow.
The software application sector, where Salesforce competes, receives a Buy rating from analysts. Stock Target Advisor gives a “Slightly Bearish” rating for the sector.
Conclusion:
Salesforce’s Q4 report paints a picture of a company in a strong financial position and taking decisive steps to reward its shareholders. The long-term impact of these moves remains to be seen, but they represent a significant shift in the company’s strategy.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
