Salesforce (CRM) prepares to release its Q2 financial report on August 28, all eyes are on the company’s expected earnings and revenue forecasts. The upcoming report is crucial, given Salesforce’s recent performance and its significant standing in the software industry.
Expected Q2 Earnings of Salesforce:
Below are the expected Q2 earnings of Salesforce.
- Salesforce has projected Q2 revenues between $9.2 billion and $9.25 billion, indicating a year-over-year growth rate of 7% to 8%.
- The revenue estimate is in line with analysts’ consensus.
- Analysts forecast a potential decline in Q2 earnings to $2.35 per share, down 3.7% from the previous quarter.
- The anticipated earnings drop follows a weaker-than-expected Q1 performance, leading to a more cautious outlook for Q2.
Despite these concerns, Salesforce CEO Mark Benioff remains optimistic, maintaining the company’s full-year revenue guidance at $38 billion. Benioff’s confidence is bolstered by Salesforce’s progress in artificial intelligence initiatives and successful customer transformations, which he believes will drive future growth.
Stock Target Advisor’s Analysis on Salesforce Inc:
According to Stock Target Advisor, Salesforce is currently rated as “Very Bullish,” based on two positive signals and no negative ones. The average analyst target price for Salesforce over the next 12 months is USD 305.90, with the company’s stock currently priced at USD 265.28. This reflects a one-year gain of 25.3%, despite a slight decrease of 0.10% over the past week.
Salesforce has demonstrated superior risk-adjusted returns and robust earnings growth over the past five years, making it a strong performer in its sector. The stock has been rated a “Strong Buy” by analysts, indicating confidence in its future potential.
Conclusion:
As Salesforce gears up to announce its Q2 earnings, the market is cautiously optimistic. While there are concerns about a possible decline in earnings, the company’s steady revenue growth and positive long-term outlook suggest resilience.
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.
