) shares are trading lower ahead of the company's third-quarter
2012 earnings report, expected out after the market closes
The Street sees earnings of 31 cents per share on revenue of
$571.42 million. The company reported earnings of 31 cents in the
same period last year.
Shares of Salesforce.com fell 8 percent in the quarter and are down
5 percent since. The stock has traded within a range of $109.22 to
$160.12 over the last 52-week time frame.
Last quarter, Salesforce ended with $4.26 of cash per share and a
book value of $10.47 per share.
Data from Bloomberg has 29 analysts with a Buy rating, 10 at Hold,
and three with a Sell on Salesforce. The price target average is
$160, with a low of $112 and high of $200.
Heading into results, investors are driving up the price of calls
versus puts, with November 130 calls down about 36 to 37 percent,
and implied volatility of 184 percent. December 130's are down 15.3
- Goldman Sachs is modeling for earnings of 31 cents and
revenue of $570 million. Goldman said checks point to potential
upside on all fronts in the quarter, and revs and bookings to
rise in fiscal 2013.
Goldman said, "We expect CRM to raise top-line guidance, and as
such, coupled with expectations for slightly below trend deferred
forecasts over the next few quarters, we see room for bookings
forecasts to rise as we head into FY13. As such, despite our view
that CRM will take down consensus operating margin expectations
for next year to a range of flat to +100 bp (consensus +260 bp)
we see the focus on bookings growth as driving outperformance in
- Wells Fargo sees earnings of 30 cents per share and revenue
of $570 million. The firm likes the momentum buildup post
Dreamforce, which has continued across all product categories.
Commenting, "SFDC's social enterprise message around Radian6 and
the integrated social data model is resonating very well with
customers anddriving demand for core sales and service cloud
solutions. SFDC is really the only vendor in the market that can
deliver a unified customer data model across sales, service and
social. The Heroku platform integration with Facebook is also
creating a virtuous loop and creating more interest in the social
- Deutsche Bank is modeling for earnings of 31 cents per share
with revenue of $570 million, largely in-line with the Street.
Deutsche said checks indicate "timing of DreamForce allowed the
company's sales force to get in front of prospects and close
deals, while front running the customary end-of-year budgetary
discussions to allocate greater share of budgets in 2012."
Further, Deutsche notes growth accelerated both through the
quarter, and over the same period last year, stating,
"Transaction growth in the quarter ticked up to 65% y/y, vs 58%
in 2Q and 41% a year ago. Sequentially, 3Q grew 14%, vs 13% in
2Q. YTD transactions increased 62% vs same time last year,
compared to 47% a year ago. Ex-chatter, transaction growth also
accelerated q/q to 14%, vs 13% and 10% a year ago; y/y growth
increased to 43% vs 41% last year."
Stay tuned to StreetInsider.com's
section to see our analysis of the highly-anticipated quarterly
results within seconds of their release. You can also check out
Salesforce's past performance at Streetinsider's
Salesforce Income Statement