Salesforce posts a slight beat, stock ticks up

The company expects earnings excluding items of 70 cents to 72 cents a share for the year ending in January, on revenue of $6.6 billion to $6.625 billion, above previous guidance of 69 cents to 71 cents a share and $6.52 billion to $6.55 billion, respectively. Analysts polled by Thomson Reuters had projected 18 cents a share in earnings and $1.675 billion in revenue.

The San Francisco firm reported a loss of $852,000, less than a penny a share, on sales of $1.63 billion; after adjustments for stock-based compensation and other factors, Salesforce said profit was 19 cents a share.

“That puts us on pace to reach a $7 billion run rate later this year, and our goal is to be the fastest to reach $10 billion in annual revenue”. Professional services and other revenues totaled $113 million, up 32 percent year-over-year.

As of July 31, 2015, deferred revenue rose 29 percent year-over-year to $3.03 billion. “We also delivered more than $1 billion in operating cash flow in the first half of the year, an increase of 44% over last year”.

Here are the must-see daily and weekly charts for Salesforce.com, and the key trading levels that can help investors navigate share price volatility both before and after earnings are recorded. Unbilled deferred revenue, representing business that is contracted but unbilled and off balance sheet, ended the quarter at approximately $6.2 billion, up 24% year-over-year.

Analysts expect the company to earn 5 cents a share for the fiscal third quarter. That compares to consensus for $1.68 billion and 18 cents. In addition, the company is raising its full fiscal year 2016 revenue and earnings per share guidance previously provided on May 20, 2015.

As of this writing, shares of Salesforce were up 2.85% at $69.75 per share in after-hours trades.

The company’s shares rose 4 percent in extended trading after the world’s biggest maker of online sales software also forecast current-quarter revenue and adjusted profit above analysts’ average estimates.