CRM software maker Salesforce.com, Inc. (CRM) said late Thursday that its second quarter profit more than doubles from last year, easily beating estimates and sending its shares soaring.
The San Francisco-based company reported second quarter net income of $21.2 million, or 17 cents per share, compared with $10 million, or 8 cents per share, in the year-ago period.
Revenue jumped 20% from last year to $316.1 million.
On average, Wall Street analysts expected a lower profit of 15 cents per share on smaller sales of $312.5 million.
Salesforce said that it added 3,900 net new customers in the quarter, while its total reached over 63,000.
Looking ahead, the company forecast a third quarter profit of 15 cents to 16 cents per share, on sales ranging from $323 million to $324 million. Analysts expected a 15 cent per-share profit on lower sales of $318.4 million.
As for the full year, it said it sees earnings of 60 cents to 61 cents per share, on sales of $1.27 billion to $1.28 billion, while analysts expect 60 cents per share on $1.26 billion in sales.
Salesforce.com shares rose $6.79, or +14.7%, in morning trading Friday.
The Bottom Line
Shares of CRM are off their 52-week highs of $58 a share. The stock has technical support in the $45 price area. If the shares can firm up, we see overhead resistance around the $56-$58 price levels. We do not currently rate this non-dividend paying stock, but we do follow the name closely.
Salesforce.com, Inc. (CRM) does not currently pay a dividend.
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