Salesforce Q1 results: ‘I don’t think the stock will run much higher’
- Salesforce reported its financial results for the first quarter on Tuesday.
- Eugene Profit discussed its Q1 earnings report on CNBC's "Closing Bell".
- Shares of the cloud company are still down more than 30% for the year.
Salesforce Inc (NYSE: CRM) jumped nearly 10% in extended trading on Tuesday after the cloud company reported market-beating results for its fiscal first quarter and raised its full-year guidance for earnings.
Key takeaways from Salesforce Q1 results
Copy link to section- Net income printed at $28 million versus the year-ago figure of $469 million.
- EPS of 3 cents was significantly lower than 50 cents in Q1 of the previous year.
- On an adjusted basis, per-share earnings came in at 98 cents in the recent quarter.
- Revenue went up 24% YoY to $7.41 billion, as per the earnings press release.
- FactSet consensus was for 94 cents of adjusted EPS on $7.38 billion in revenue.
Salesforce had $42 billion worth of remaining performance obligations at the end of its fiscal Q1. The stock is still down more than 30% for the year.
Future outlook and expert’s remarks
Copy link to sectionFor the full financial year, Salesforce forecasts its adjusted earnings to fall between $4.74 and $4.76. It, however, trimmed its revenue outlook and now expects up to $31.8 billion this year.
In comparison, analysts had called for $4.66 of EPS on $32.06 billion in revenue for fiscal 2023. On CNBC’s “Closing Bell: Overtime”, Profit Investments’ Eugene Profit said:
The stock won’t go down much, but I don’t think it will run much higher either. I like it, valuation is good compared to last year. But I think we need a little bit more macroeconomic stability for it to really take off again.
