• Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
Money Profit News
No Result
View All Result
Home Breaking News

Salesforce stock has worst day since beginning of pandemic after disappointing earnings forecast

by
December 1, 2021
in Breaking News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Related Posts

Top U.S., Chinese and Russian officials tour Africa as diplomatic charm offensive gathers pace

Tesla, Nvidia Lead Today’s Biggest S&P 500 Stock Market Losers

Amazon, Qualcomm Partner Driving Breakout With 778% Growth

China’s January factory activity returns to growth as economists cheer its reopening

Marc Benioff, CEO, Salesforce.com speaking at the World Economic Forum in Davos, Switzerland, Jan. 23, 2020.

Adam Galasia | CNBC

Salesforce shares plunged 12% on Wednesday, their steepest drop since March 2020, when concerns about the spreading Covid-19 pandemic shocked the market.

The decline followed disappointing earnings guidance for the fiscal fourth quarter, which overshadowed better-than-expected third-quarter results and Salesforce’s promotion of Bret Taylor to the role of co-CEO, alongside Marc Benioff.

Salesforce said in its report that earnings per share for the December quarter will fall between 72 and 73 cents, trailing the 81-cent average estimate, according to analysts surveyed by Refinitiv. While profit missed expectations, Salesforce raised its guidance for revenue to between $7.22 billion and $7.23 billion, about in line with estimates of $7.22 billion.

Analysts at Atlantic Equities wrote in a report that Salesforce’s forecast “could reflect management conservatism.”

Third-quarter “results were solid,” wrote the analysts, who recommend buying the stock. “However slightly disappointing guidance will give the stock a breather after a strong run over the last six months.”

After Wednesday’s slide, Salesforce shares are up 6.6% over the past six months, trailing the S&P 500, which is up 7.4%. The stock closed at $251.50.

Salesforce vs. S&P 500

CNBC

On the earnings call, Salesforce executives were bullish about the fourth quarter, with revenue expected to increase 24%, helped by $285 million in sales from Slack. Salesforce’s acquisition of the communications software company for more than $27 billion closed in July.

Amy Weaver, Salesforce’s chief financial officer, did suggest on the call that increased costs could appear in various ways, including in travel and expenses.

“In Q4, we are expecting to see additional investments in our workforce and our growth and also some modest increased T&E expectations,” Weaver said. “And that’s going to cause a q-over-q decline in operating margin.”

Salesforce’s stock drop on Wednesday came amid growing concerns about the omicron Covid variant. U.S. health officials said on Wednesday that the U.S. has confirmed the country’s first case of the new, heavily mutated coronavirus variant in California.

The last time Salesforce’s stock had a worse day was March 16, 2020, when the stock plummeted 16%. On that day, U.S. stock indexes suffered their steepest drop since the crash in October 1987.

WATCH: Jim Cramer on Salesforce’s downbeat forecast

Next Post

JPMorgan’s S&P 500 forecast for 2022 is among the most bullish on Wall Street. Here’s the biggest risk it sees for stocks.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Popular Posts

Breaking News

Top U.S., Chinese and Russian officials tour Africa as diplomatic charm offensive gathers pace

by
January 31, 2023
0

Janet Yellen, US Treasury secretary, during a news conference with Enoch Godongwana, South Africa's finance minister, at the National Treasury...

Read more

Top U.S., Chinese and Russian officials tour Africa as diplomatic charm offensive gathers pace

Tesla, Nvidia Lead Today’s Biggest S&P 500 Stock Market Losers

Amazon, Qualcomm Partner Driving Breakout With 778% Growth

UniCredit shares rise as bank hikes payout goal by 40% after record profit

China’s January factory activity returns to growth as economists cheer its reopening

Dow Jones Falls 260 Points Ahead Of Fed Meeting, Big Earnings; What To Do Now

Load More

All rights reserved by www.moneyprofitnews.com

  • Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

moneyprofitnews