The 10-second takeaway
For the quarter ended July 31 (Q2), salesforce.com, inc met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share expanded.
Gross margins contracted, operating margins grew, net margins contracted.
salesforce.com, inc logged revenue of $731.6 million. The 33 analysts polled by S&P Capital IQ looked for sales of $728.2 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $546.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.42. The 35 earnings estimates compiled by S&P Capital IQ averaged $0.39 per share. GAAP EPS were -$0.07 for Q2 versus -$0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 77.8%, 10 basis points worse than the prior-year quarter. Operating margin was -1.8%, 110 basis points better than the prior-year quarter. Net margin was -1.3%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $772.3 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $3.03 billion. The average EPS estimate is $1.50.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on salesforce.com, inc is outperform, with an average price target of $162.30.
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