Guides Inline Following EPS, Revenue Beats Inc. (NYSE: CRM) reported third-quarter 2013 earnings after markets closed today. For the quarter, the cloud computing company posted adjusted diluted earnings per share (EPS) of $0.33 on revenues of $788 million. In the same period a year ago, the company reported EPS of $0.34 on revenues of $584 million.Third-quarter results compare to the Thomson Reuters consensus estimate for EPS of $0.32 on $776.5 million in revenues.

The company reported a GAAP EPS loss of $1.55, which includes a one-time $149 million non-cash charge to income tax expense, a stock-based compensation expense of $105 million, and other items.

The company's CEO said: is the first enterprise cloud computing company to exceed a $3 billion annual revenue run rate, with outstanding third quarter revenue growth at 35% in dollars and 37% in constant currency. Given the strong customer response to our next generation social and mobile cloud technologies, I'm delighted to announce that we expect to surpass a $4 billion annual revenue run rate during our fiscal year 2014.

For the company's fourth quarter, projected revenues of $825 to $830 million and a GAAP EPS loss of $0.23 to $0.25. Adjusted EPS is forecast at $0.38 to $0.40. The consensus estimate calls for EPS of $0.40 on revenues of $829.9 million.

For the full fiscal year, the company expects revenues of $3.041 to $3.046 billion and a GAAP EPS loss of $2.00 to $2.02. Adjusted EPS is expected to total $1.50 to $1.52. The consensus estimate calls for EPS of $1.50 on revenues of $3.03 billion.

Operating expenses rose sharply, by a total of nearly $200 million, with marketing and sales expenses claiming more than half the increase. Gross profit fell from 78% in the same period a year ago to 76% this year.

To meet the consensus estimates, the company needs to hit the top of its forecast ranges. That's never easy to do.

The company's shares are down about 0.3% in after-hours trading today, at $145.54 in a 52-week range of $94.09 to $164.75. The consensus target price for the shares was around $177.10 before today's report.

Paul Ausick

Filed under: 24/7 Wall St. Wire, Earnings, Internet, Software Tagged: CRM, featured
Read Full Story


DJIA 24,322.34 238.51 0.99%
NASDAQ 7,118.68 114.94 1.64%
S&P 500 2,666.94 27.54 1.04%
NIKKEI 225 22,452.36 132.75 0.59%
HANG SENG 30,031.88 24.20 0.08%
DAX 12,500.47 78.17 0.63%
USD (per EUR) 1.21 0.00 0.01%
USD (per CHF) 0.99 0.00 0.02%
JPY (per USD) 109.21 -0.09 -0.08%
GBP (per USD) 1.39 0.00 0.07%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.