Salesforce is set to release its earnings on December 3, 2024, after the market closes. Analysts anticipate an EPS of $2.44 and revenue of $9.35 billion.

Highlights:

Year-over-year (YoY), the estimated EPS of $2.44 represents a 15.6% increase from $2.11 in Q3 FY24, while quarter-over-quarter (QoQ), it shows a slight decrease of 4.7% from $2.56 in Q3 FY24. Revenue is projected to rise by 7.5% YoY from $8.72 billion, but it is expected to dip 0.9% QoQ from $9.33 billion.

Key metrics include a gross margin of 76.35% and an operating margin of 18.14%. Salesforce’s annual recurring revenue (ARR) guidance for FY 2025 stands at $37.7 billion, reflecting an 8-9% YoY growth. The company has also raised its non-GAAP operating margin guidance to 32.8%, marking a 230 basis point improvement YoY. Operating cash flow growth is forecasted at 23-25% YoY.

Strategies:

Growth drivers for Salesforce include the launch of Agentforce, which aims to enhance customer engagement and operational efficiency, strong performance in multi-cloud deals (making up nearly 80% of new business), and innovations in its Data Cloud platform that are boosting customer satisfaction.

However, the company faces potential challenges from economic uncertainties that may impact customer spending and increased competition in the AI and CRM space, particularly from established players like Microsoft.

Earning Reactions:

Aug 28, 2024: The Company reported after market close and next day stock was down 0.73%.

May 9, 2024: The Company reported after market close and next day stock was down 19.7%.

Feb 28, 2024: The Company reported after market close and next day stock was up 3.02%.

Nov 29, 2024: The Company reported after market close and next day stock was up 9.36%.

Guidance:

Revenue Guidance for FY25 is $37.7 billion to $38 billion, reflecting an 8% to 9% growth YoY. Non-GAAP Operating Margin Guidance is raised to 32.8%, a 230 basis point improvement YoY. Operating Cash Flow Growth is expected to be approximately 23% to 25% YoY.

Technical:

The stock is trading at $331.6 with 0.49% increase today. The stock closed the previous week at $329.99 with 3.52% decrease. The stock has recently created a new all-time high, and is currently trading above the previous all-time high. The stock was trading in an ascending triangle. The stock broke out of the ascending triangle and also retested as a support. Short-term target for the stock is $367, while mid and long-term targets are $439 and $522. 50, 100 and 200 weekly EMAs are at $273, $252 and $227 respectively. Weekly RSI is at 73 and MACD is bullish.

At daily timeframe 50, 100 and 200 day EMAs are at $306, $289 and $275 respectively. RSI is at 60 and MACD is bearish.