Earnings Preview: Salesforce.com

| About: Salesforce.com, Inc. (CRM)

Salesforce.com (NYSE:CRM) is expected to report Q2 earnings after the market close on Thursday, August 18, with a conference call scheduled for 5:00 pm ET.


The consensus estimate is 30c for EPS and $528.78M for revenue, according to First Call. Guidance provided by management on its last earnings call for Q2 was for EPS of 29c-30c on revenue of $526M-$528M. Salesforce.com also raised guidance for FY12 to EPS of $1.30-$1.32, on revenue of $2.15B-$2.17B.

Analyst Views

For Q2, Credit Suisse forecasts revenue of $529.1M and EPS of 30c. The firm estimates ending deferred revenue of $911.5M vs. consensus of approximately $920M, and billings of $525.4M vs. consensus of approximately $538M. Credit Suisse forecasts Q2 cash flow from operations of $57.0M vs. consensus of $90.2M. Credit Suisse expects Salesforce.com's Q2 results to be above consensus driven by continued demand from enterprises refreshing legacy applications, good Service Cloud traction, and strong macro trends in the SFA segment. The firm remains positive on Salesforce.com’s long-term outlook and growth opportunity in the on-demand and cloud computing markets, however valuation remains Credit Suisse's primary hurdle from turning more positive on the stock.