SALESFORCE CONTINUES TO BE STRONG. “..taking advantage of the “massive” digital customer transformation..” By Todd Horwitz, Bubba Trading.

 

Salesforce Pushes Higher

Salesforce.com Inc. on Tuesday raised its full-year earnings outlook after the business-software company said it delivered record revenue in the latest quarter. For the current year, Salesforce now expects earnings per share of 78 cents to 80 cents, up from the prior guidance of 66 cents to 68 cents. On an adjusted basis, earnings per share are expected to be between $2.88 and $2.90, up from its previous outlook of $2.54 to $2.56. The San Francisco company maintained its forecast for revenue to be between $16.1 billion and $16.25 billion.

Salesforce is taking advantage of the “massive” digital customer transformation, CEO Marc Benioff told CNBC Tuesday. The cloud software company claims 16.8% of the global market share, trumping the 5.7% market share of its closest competitor, Oracle. Salesforce delivered earnings beat Tuesday, reporting 32 cents per share for the first quarter of its 2020 fiscal year.

The digital customer transformation “is as big as Y2K was for the tech industry,” Benioff told “Mad Money” host Jim Cramer. “We’re No. 1 in [customer relationship management], which is the fastest-growing part of enterprise software, because every company and every industry and every government [agency] is recreating themselves with their customer, so this is what’s driving our growth.

“Some of the firm’s clients include Dell, Peloton, Southwest Airlines and several federal U.S. government agencies. Benioff said serving the federal Education, Agriculture and Interior departments has been one of the “most exciting things” during the quarter. “They’re going through a huge digital transformation in the U.S. federal government, and Salesforce has been able to offer many of those agencies the rapid successful digital transformation that they need,” he said.

Shares of Salesforce gained nearly 4% during Tuesday’s session and rallied 3% in after-market trading. The stock has lost more than 7% in the past month, but it’s up 10.10% since the start of the year.

Todd “Bubba” Horwitz

IN ASSOCIATION WITH

Financial Markets and Political Commentary
 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.