CRM Stock Climbs As Earnings, Revenue Top Estimates

Salesforce stock climbed Tuesday after January-quarter earnings fell from a year earlier but topped views, while revenue beat analyst estimates. The enterprise software maker’s revenue guidance for CRM stock came in above expectations while its profit outlook missed.

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Salesforce (CRM) reported fourth-quarter earnings after the market close. CRM stock rose 4% to 217.25 in extended trading on the stock market today.

Including recently acquired Slack Technologies, Salesforce earnings fell 19% to 84 cents on an adjusted basis. The Slack deal closed in July.

San Francisco-based Salesforce said revenue climbed 26% to $7.33 billion. A year earlier, Salesforce earnings were $1.04 a share, including investment gains, on sales of $5.82 billion.

In addition, CRM stock analysts expected Salesforce to report earnings of 75 cents a share on sales of $7.24 billion.

CRM Stock: April Quarter Guidance Mixed

The enterprise software maker said current remaining performance obligations, or CRPO bookings, rose 22% to $22 billion. That topped analyst estimates of $21.42 billion.

Meanwhile, CRPO bookings are an aggregate of deferred revenue and order backlog.

For the current quarter ending in April, Salesforce’s revenue outlook topped expectations. The software maker expects revenue in a range of $7.37 billion to $7.38 billion vs. estimates of $7.27 billion.

Also, the company forecast earnings in a range of 93 cents to 94 cents per share versus estimates of $1 a share for CRM.

Salesforce sells software under a subscription model. Its software helps businesses organize and handle sales operations and customer relationships. The company has expanded into marketing, customer services and e-commerce.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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