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Salesforce.com (NYSE:CRM) is scheduled to release Q4 earnings this Wednesday February 24th, after the market close (see transcript here upon availability).

Average analyst estimates for the SaaS leader are $.15/share in EPS and $342.18 million in revenue. Thirty analysts track the stock with no upward EPS revisions in the last 30 days and one downward EPS revision in the last 30 days.

Last quarter, Salesforce.com met average analysts expectations of .16/share.

I always find this a tough period waiting to see if the company is going meet, exceed, or miss their earnings estimates. One thing I have discovered of value is to analyze sentiment moves in a stock ahead of the company’s earnings release. In the case of Salesforce.com, I will use the piqqem sentiment index for Salesforce.com to see how sentiment has changed in the last quarter, for the months within that quarter, and from the end of the reporting quarter through today.

I’m looking for moves or changes that may foreshadow the earning release. (piqqem leverages the ‘wisdom of crowds’ by allowing its users to vote on the price direction of a stock and then applies its own propriety factors to calculate sentiment for a security. In their model, -100 is the lowest and 100 is the highest sentiment).

Sentiment for Salesforce.com

(Click to enlarge)

The above chart shows Salesforce.com’s sentiment moving up 7 pts from the point of their last earnings release. Sentiment for the S&P is down 12 pts in the same period, so Salesforce.com’s strong showing is even more impressive given overall market conditions.

On the Piqqem scale, Salesforce.com’s sentiment rating of 27.78 is considered a buy and its absolute sentiment indicates a high quality stock. Is Salesforce.com beginning to pull away from IBM (NYSE:IBM), Microsoft (NASDAQ:MSFT), and Oracle (NYSE:ORCL) in the segment of salesforce automation? Only Salesforce.com knows their actual results, but their current sentiment points to Salesforce.com delivering good news on Wednesday.

Disclosure: No positions

Source: Is the SaaS Business Model Finally Paying Off?

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