Salesforce Looks Dull - Analyst Blog
28 Februar 2013 - 7:23PM
Zacks
Salesforce.com (CRM) is set to report
fourth-quarter 2013 results on Feb 28. Last quarter, the company
missed expectations. Let’s see how things are shaping up for this
announcement.
Factors This Past Quarter
Amid all the macro uncertainty and that resulted in conservative
tech spending, Salesforce.com reported dismal third-quarter 2013
results. The company reported a much wider-than-expected loss per
share in the last reported quarter.
On the positive side, the company witnessed revenue growth
across geographies and received strong business from its cloud
customers. The fourth-quarter guidance was modest, although the
results came below expectation.
However, we remain concerned about a sluggish business
environment in Europe, coupled with currency headwinds,
not-so-encouraging tech expenses and stiff competition from its
peers.
Though we are encouraged by Salesforce’s growth prospects in the
cloud market, the renewed focus of tech giants such as Dell
Inc. (DELL) and Hewlett-Packard Co. (HPQ)
into the cloud space intensified competition in the third
quarter.
Considering the situation, it is hard to predict Salesforce’s
success story, unless the company adopts other innovative business
strategies to influence growth.
Earnings Whispers?
The Zacks Consensus Estimate for the fourth quarter stands at a
loss of 3 cents, while that for fiscal 2013 stands at 11 cents.
There has been no estimate revision for the company over the
last 30, 60 or 90 days, as no major developments took place post
its third-quarter results.
Salesforce shares carry a Zacks Rank #4 (Sell). The sell rated
stocks (#4 and #5) should never be considered going into an
earnings announcement.
Other Stocks To Consider
Here are a few stocks that might be worth considering at this
point since they have the right combination of elements – Zacks
Ranks #1, #2, or #3 and a positive Zacks expected surprise
prediction, or ESP (Read: Zacks Earnings ESP: A Better Method) to
post an earnings beat this quarter:
Symantec Corp. (SYMC), with a Zacks Rank #1
(Strong Buy) with an ESP of +5.88%.
SALESFORCE.COM (CRM): Free Stock Analysis Report
DELL INC (DELL): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
SYMANTEC CORP (SYMC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Dell (NASDAQ:DELL)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Dell (NASDAQ:DELL)
Historical Stock Chart
Von Jul 2023 bis Jul 2024