Salesforce (NYSE: CRM) stock buzzed Thursday after the company reported better-than-expected earnings for the fourth quarter of its 2018 fiscal year, which ended on Jan. 31, after the bell on Wednesday.
The company reported 35 cents in earnings per share vs. 33 cents as expected by analysts. Revenue was $2.85 billion vs. $2.81 billion as expected by analysts.
For its full 2018 fiscal year, Salesforce had $1.35 in earnings per share, excluding certain items, on $10.48 billion in revenue, which was up 25% year over year, according to Wednesday's statement. Analysts had been expecting $1.34 in earnings per share and $10.44 billion in revenue for the full year, according to Thomson Reuters.
Salesforce gets most of its money from subscriptions and support, and with $2.66 billion in revenue there it exceeded the FactSet estimate of $2.59 billion. But the company fell below expectations in the professional services segment, with $196 million, while analysts polled by FactSet had been expecting $218.2 million
In terms of guidance, Salesforce is expecting 43-44 cents in earnings per share, excluding certain items, on $2.925-2.935 billion in revenue. Analysts had expected Salesforce to forecast 37 cents, excluding certain items, on $2.9 billion in revenue, according to experts.
The company also raised its guidance by $150 million for the 2019 fiscal year, to $12.60-12.65 billion.
Shares in Salesforce rocketed $3.84, or 3.3%, to a new 52-week high of $120.09 Thursday, towering over a 52-week low of $80.50.
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