salesforce.com Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of salesforce.com (NYS: CRM) have popped today by as much as 11% after the company reported earnings last night and posted strong bookings growth.
So what: Revenue in the fourth quarter was $632 million, with adjusted earnings per share of $0.43. Bookings growth jumped 57% to almost $1.1 billion, handily topping the market's expectations, while operating cash flows of $240 million also came out strong.
Now what: The company also raised its full-year guidance and is now expecting revenue to be between $2.92 billion and $2.95 billion, with adjusted earnings per share of $1.58 to $1.62. The strong results have triggered a slew of upgrades and reiterations of buy ratings and price target increases from Street analysts. Shares had pulled back significantly from highs set last year on growth concerns, so this latest release is putting some of those fears to rest.
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