Will These Numbers From salesforce.com Be Good Enough for You?

salesforce.com (NYSE: CRM  ) is expected to report Q2 earnings around Aug. 15. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict salesforce.com's revenues will expand 33.4% and EPS will improve 30.0%.

The average estimate for revenue is $728.1 million. On the bottom line, the average EPS estimate is $0.39.

Revenue details
Last quarter, salesforce.com logged revenue of $695.5 million. GAAP reported sales were 38% higher than the prior-year quarter's $504.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.37. GAAP EPS were -$0.14 for Q1 compared to $0.00 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 78.2%, 140 basis points worse than the prior-year quarter. Operating margin was -3.2%, 260 basis points worse than the prior-year quarter. Net margin was -2.8%, 290 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $3.02 billion. The average EPS estimate is $1.51.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on salesforce.com is outperform, with an average price target of $158.59.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has the following options: short AUG 2012 $130.00 puts on Salesforce.com, long AUG 2012 $150.00 puts on Salesforce.com, short JAN 2013 $150.00 calls on Salesforce.com, and long JAN 2013 $150.00 puts on Salesforce.com. Motley Fool newsletter services recommend Salesforce.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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