) is set to report third-quarter fiscal 2014 results on Nov 18.
Last quarter, it posted a negative surprise of 125.0%. Let us see
how things are shaping up for this announcement.
Factors This Past Quarter
Salesforce.com reported modest second-quarter 2014 results.
Loss per share was wider than the Zacks Consensus Estimate, while
revenues surpassed the consensus mark. During the reported
quarter, the company witnessed continued demand across all of its
cloud solutions supported by a decline in the attrition rate.
Although operating results were impacted by higher costs, the
company has provided positive third-quarter guidance and raised
its fiscal 2014 revenue guidance.
Our proven model does not conclusively show that
Salesforce.com is likely to beat earnings this quarter. A stock
needs to have both a positive
and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, that is not the case here due to the following
ESP for Salesforce.com is 0.00% since the Most Accurate estimate
stands at loss of 4 cents per share, which is in line with the
Zacks Consensus Estimate.
Salesforce.com's Zacks Rank #3 (Hold) when combined with a 0.00%
ESP makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements to
post an earnings beat this quarter:
Best Buy Co., Inc.
), with Earnings ESP of +9.09% and a Zacks Rank #2 (Buy).
), with Earnings ESP of +16.67% and a Zacks Rank #2 (Buy).
Trina Solar Limited
), with Earnings ESP of +77.78% and a Zacks Rank #2 (Buy).
BEST BUY (BBY): Free Stock Analysis Report
SALESFORCE.COM (CRM): Free Stock Analysis
TIVO INC (TIVO): Free Stock Analysis Report
TRINA SOLAR LTD (TSL): Free Stock Analysis
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