Should Investors Avoid Salesforce Stock?
salesforce.com (NYSE: CRM) has brought both disappointment and pleasant surprises to investors in its time as a public company. As the software-as-a-service (SaaS) stock that arguably pioneered the SaaS industry, Salesforce continues to deliver from a revenue and earnings perspective. However, an unexpected co-CEO departure led to a stock price drop following the earnings report released earlier this week. While leadership changes bring uncertainty, the real concerns with the growth trajectory of Salesforce stock actually lie with its financials.
Salesforce reported fourth-quarter fiscal 2020 revenue of $4.85 billion, a 35% increase from the same quarter last year when the company brought in $3.6 billion. Salesforce posted earnings of $0.66 per share on a non-GAAP basis. Wall Street had expected $0.56 per share. Despite the earnings beat, the EPS was actually down from the year-ago level of $0.70 per share. On a GAAP basis, the company posted a $0.28 per-share loss, which missed estimates calling for a $0.03 per share loss.
The company lifted its revenue outlook for the year. Fiscal 2021 revenue guidance increased to the range of $21 billion to $21.1 billion. This represents a $200 million increase from the previous forecast.
Source Fool.com
