Salesforce.com Inc. stock fell more than 3% in the extended session Monday, after the software company reported better-than-expected earnings but a disappointing forecast.
Salesforce CRM, -3.66% reported fiscal fourth-quarter net income of $362 million, which amounts to 46 cents a share, compared with $206 million, or 28 cents a share, in the year-ago period. Adjusted for items such as stock-based compensation, among other items, earnings were 70 cents a share, including a 17-cents-a-share benefit from tax adjustments.
The San Francisco-based company reported that revenue rose 26% to $3.6 billion. Salesforce reported billings of $6.42 billion, according to FactSet. Analysts surveyed by FactSet had estimated adjusted earnings of 55 cents a share on revenue of $3.56 billion.
“Our relentless focus on delivering innovation and customer success has fueled our growth and solidified our leadership in the enterprise,” co-Chief Executive Keith Block said in a prepared statement. “This is just the beginning, which is why we’re now targeting $26 [billion] to $28 billion in revenue by [full-year 2023] – organically doubling our revenue again in the next four years.”
Salesforce’s other co-CEO is founder Marc Benioff.
For the fiscal first quarter, analysts model Salesforce’s adjusted earnings at 63 cents a share on sales of $3.69 billion. For the full year, analysts expect adjusted earnings of $2.75 a share and sales of $15.97 billion. Analysts expect first-quarter billings of $2.73 billion and full-year billings of $17.46 billion.
Salesforce said it expects fiscal first-quarter adjusted earnings of 60 cents to 61 cents a share and sales of $3.67 billion to $3.68 billion; it is anticipating adjusted full-year earnings of $2.74 to $2.76 a share and sales of $15.95 billion to $16.05 billion.
Salesforce stock has gained 30% in the past year, with the S&P 500 index SPX, -0.39% rising 4.2%.
