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Salesforce.com, inc (NYSE:CRM) is scheduled to report its Q2 2013 results on August 23, 2012, after the bell. The Street expects EPS and revenue of $0.39 and $728.15M, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from CRM and the news from its closest competitors.

salesforce.com, inc Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.37 EPS, beating analyst estimates of $0.34.

salesforce.com, inc EPS Historical Results vs Estimates

The consensus EPS estimate is $0.39 based on 38 analysts' estimates, up from $0.30 a year ago. Revenue estimates are $728.15M, up from $546.00M a year ago. The median target price by analysts for the stock is $170.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On May 24, 2012, Oppenheimer upgraded the company from Perform to Outperform.
  • On May 18, 2012, FBR Capital reiterated Outperform rating for the company.
  • On April 16, 2012, Barclays reiterated Overweight rating for the company.
  • On April 9, 2012, MKM Partners initiated Buy rating for the company.
  • On March 28, 2012, Canaccord Genuity reiterated Buy rating for the company.
  • On February 24, 2012, Stifel Nicolaus reiterated Buy rating for the company.
  • On February 24, 2012, RBC Capital Mkts reiterated Outperform rating for the company.
  • On February 24, 2012, FBR Capital reiterated Outperform rating for the company.
  • On February 22, 2012, Needham reiterated Buy rating for the company.

Latest News

  • On August 14, 2012, Salesforce.com Inc announced that it has completed its acquisition of Buddy Media, social media marketing platform. With the close of the acquisition, the Buddy Media team joins the Salesforce Marketing Cloud.
  • On June 14, 2012, Salesforce.com Inc and Twitter announced a strategic global alliance to provide Twitter's Firehose of public Tweets to Salesforce Radian6 customers. This combination allows businesses to analyze the more than 400 million Tweets generated daily to listen, fuel engagement and gain customer insight.
  • On June 4, 2012, Salesforce.com Inc announced that it has entered into a definitive agreement to acquire Buddy Media, social media marketing platform, for approximately $689 million payable in cash and salesforce.com equity.
  • On May 17, 2012, Salesforce.com, Inc. announced that for the second quarter of 2013, it expects revenue to be in the range of $724-$728 million. GAAP net loss per share is expected to be in the range of ($0.10)-($0.09), while diluted non-GAAP EPS is expected to be in the range of $0.38-$0.39. The non-GAAP estimate excludes the effects of stock-based compensation expense, expected to be approximately $85 million, amortization of purchased intangibles related to acquisitions, expected to be approximately $20 million, and net non-cash interest expense related to the convertible senior notes, expected to be approximately $6 million.
  • On April 23, 2012, 1st Holdings Inc announced that it has changed the schedule to sell its treasury stock to Salesforce.com, Inc, from May 1, 2012 to May 8, 2012.
  • On April 16, 2012, 1st Holdings Inc announced that it has formed a business and capital alliance with Salesforce.com, Inc on April 16, 2012. 1st Holdings's group companies will provide Salesforce's platform BI functions.
  • On April 10, 2012, Cameleon Software SA announced that it has agreed a strategic partnership with Salesforce.com Inc. to offer its cloud-based Configure Price Quote solution on Force.com.
  • On February 23, 2012, Salesforce.com, Inc. announced that for the first quarter of 2013, it expects revenue to be in the range of $673-$678 million, GAAP net loss per share to be in the range of ($0.19) to ($0.18), diluted non-GAAP EPS to be in the range of $0.33 to $0.34. The non-GAAP estimate excludes the effects of stock-based compensation expense, expected to be approximately $79 million, amortization of purchased intangibles related to acquisitions, expected to be approximately $21 million.
  • On February 22, 2012, QPR Software Oyj announced that it has launched its Automated Business Process Discovery solution (QPR ProcessAnalyzer) for Salesforce.com., Inc. The solution delivers a view into sales by visualizing the actual sales process; it provides up-to-date information about typical sales paths and displays process performance metrics.

Competitors

Adobe Systems (NASDAQ:ADBE), F5 Networks (NASDAQ:FFIV), Microsoft (NASDAQ:MSFT), Oracle (NYSE:ORCL), and SAP (NYSE:SAP) are peers for comparison for Salesforce and the table below provides the key metrics for these companies and the industry.

salesforce.com, inc key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

CRM Chart

CRM data by YCharts

Competitors' Latest Development

  • On August 14, 2012, Reuters reported that Eastman Kodak Co extended its patent auction on Monday, saying it would not announce a winner as planned because it was still in discussions with bidders.
  • On August 11, 2012, Reuters reported that as Eastman Kodak Co's patent auction draws to a close, the Company has only received lowball bids for the patents that it believes are worth $2.6 billion, the Wall Street Journal reported.
  • On August 8, 2012, Reuters reported that Google Inc and Oracle Corporation's copyright and patent battle took a strange twist on Tuesday, after a judge ordered the companies to disclose the names of journalists, bloggers and other commentators on their payrolls.
  • On August 6, 2012, Oracle Corporation announced that Kamal Osman Jamjoom Group LLC is using Oracle Retail Point-of-Service and Oracle Retail Store Inventory Management to optimize store operations and improve customer experiences across its 500-plus stores in the region.
  • On July 30, 2012, Oracle Corporation announced that it has entered into an agreement to acquire Xsigo Systems, a provider of network virtualization technology. Terms of the agreement were not disclosed.
  • On July 24, 2012, Microsoft Corp announced that it has signed a patent cross-license agreement with Amdocs Software Systems Limited. The patent agreement provides mutual access to each company's patent portfolio, including a license under Microsoft's patent portfolio covering Amdocs' use of Linux-based servers in its data centers.
  • On July 24, 2012, SAP AG reiterated its outlook for fiscal 2012. The Company expects fiscal 2012 non-IFRS software and software-related service revenue to increase in a range of 10%-12% at constant currencies (2011: EUR11.35 billion).
  • On July 19, 2012, Oracle Corporation announced that announced that it has entered into an agreement to acquire substantially all of the assets of Skire, a provider of capital program management and facilities management applications available on the cloud and on-premise.
  • On July 18, 2012, F5 Networks, Inc. announced that for the fourth quarter of 2012, it expects revenue to be in the range of $360-$370 million, net income to be in the range of $72.1-$74.5 million, Non-GAAP net income excluding stock-based compensation expense and amortization of purchased intangible assets to be in the range of $92.7-$95.1 million, GAAP earnings per diluted share to be in the range of $0.90-$0.93 and Non GAAP earnings per diluted share to be in the range of $1.16-$1.19. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $377 million, net income of $99 million and EPS of $1.24 for the fourth quarter of 2012.
  • On July 17, 2012, Reuters reported that EU antitrust regulators have opened an investigation into whether Microsoft Corp is complying with a 2009 ruling ordering it to offer users a choice of web browsers, the European Union's antitrust chief said on Tuesday.
  • On July 16, 2012, Reuters reported that Comcast Corp., the parent company of NBC, has bought out Microsoft Corp's 50% stake in MSNBC.com for about $300 million to assume full control of the news web site.
  • On July 10, 2012, Microsoft Corp announced that it has further extended its relationship with the Cincom Systems. Cincom has added Cincom Acquire configure, price, quote software to Global Independent Software Vendor agreement with Microsoft Dynamics.
  • On July 10, 2012, Dow Jones reported that Microsoft Corp is suing nine computer resellers in China for allegedly installing pirated Windows software on computers they then sold.
  • On July 9, 2012, Microsoft Corp. and Aluratek, Inc. announced that they have signed a patent agreement that provides broad coverage under Microsoft's patent portfolio for Aluratek's eReaders and tablets running the Android or Chrome Platform.
  • On July 9, 2012, Microsoft Corp. and Coby Electronics Corporation announced that they have signed a patent agreement that provides broad coverage under Microsoft's patent portfolio for Coby's products running the Android or Chrome Platform.
  • On July 9, 2012, Microsoft Corp. and Perceptive Pixel Inc. (PPI) announced that they have entered into a definitive agreement under which Microsoft will acquire PPI, a recognized leader in research, development and production of large-scale, multi-touch display solutions.
  • On July 5, 2012, Edgewater Technology, Inc. announced that Edgewater Fullscope, a wholly-owned subsidiary, has entered into an asset purchase agreement with Microsoft Corporation.
  • On July 2, 2012, Microsoft Corp announced that it will take a non-cash, non-tax-deductible income statement charge for the fourth quarter of fiscal year 2012 for the impairment of goodwill in its Online Services Division segment, mostly related to its 2007 aQuantive, Inc., acquisition.
  • On June 26, 2012, Avanquest Software SA announced a strengthening of its technological partnership with Microsoft Corp. Avanquest Software will develop and publish a series of applications with Cloud components that will use Microsoft's Windows Azure Cloud platform.
  • On June 25, 2012, Hubwoo SA announced the extension of its global business process outsourcing agreement with Sap AG. Through the renewal of the BPO agreement, Hubwoo will offer outsourcing and on-demand services powered by SAP software.
  • On June 25, 2012, Microsoft Corp. and Yammer Inc. announced that they have entered into a definitive agreement under which Microsoft will acquire Yammer, a provider of enterprise social networks, for $1.2 billion in cash.
  • On June 21, 2012, Longview, Texas-based InNova Patent Licensing LLC has filed patent infringement lawsuits against 24 tech companies accused of infringing an InNova patent used in e-mail spam technology.
  • On June 19, 2012, Adobe Systems Incorporated announced that for third quarter of 2012, it expects revenue of $1.075-$1.125 billion, diluted earnings per share basis to a range of $0.38-$0.43 on a GAAP basis, and $0.56-$0.61 on a non-GAAP basis.
  • On June 19, 2012, Oracle Corporation announced that for the first quarter of 2013, it expects total revenue growth on a GAAP and non-GAAP basis to range from 3% to 6% in constant currency and negative 2% to positive 1% in current rates.
  • On June 17, 2012, Reuters reported that Microsoft Corp is close to buying business software company Yammer Inc for more than $1 billion. Microsoft's interest in Yammer, known for its social networking functions, could allow the software giant to beef up its offerings for corporations.
  • On June 15, 2012, AOL Inc announced that it has completed the previously announced $1.056 billion patent transaction with Microsoft Corporation. The transaction includes the sale of over 800 patents and their related patent applications, and grants Microsoft a non-exclusive license to its retained patent portfolio for aggregate proceeds of $1.056 billion in cash.
  • On June 15, 2012, The Wall Street Journal reported that Business-software company Yammer Inc. agreed to sell itself to Microsoft Corp. for $1.2 billion, according a person familiar with the matter.
  • On June 5, 2012, Oracle Corporation announced that it has entered into an agreement to acquire Collective Intellect. Collective Intellect's cloud-based social intelligence solutions enable organizations to monitor, understand and respond to consumers' conversations on social media platforms such as Facebook (NASDAQ:FB) and Twitter.
  • On June 5, 2012, Saia, Inc announced it has chosen Microsoft Dynamics Customer Relationship Management 2011 software to enhance its sales and marketing efforts.
  • On May 23, 2012, Oracle Corporation announced that it has entered into an agreement to acquire Vitrue, a cloud-based social marketing and engagement platform that enables marketers to centrally create, publish, moderate, manage, measure and report on their social marketing campaigns and activities on social media platforms such as Facebook, Twitter, YouTube and Google+.

Technical Overview


The stock has a market capitalization of $19.89B and is currently trading at $144.13 with a 52 week range of $94.09 - $164.75. The stock's year-to-date performance has been 42.06%. It is currently trading above 20-, 50- and 200-day SMAs.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Salesforce.com