Salesforce CEO Says Its Business Is Still In A Strong Position
- Posted on December 05, 2019
- Business
- By admin admin
Salesforce co-CEO, Keith
Block told CNBC’s Jim Cramer on Tuesday that the company’s earnings-per-share
guidance cut is not a major concern.
Shares of the business
software provider closed around $161, but fell around 2% in extended trading
after it issued a per-share earnings guidance of $0.54 to $0.55 for the current
quarter, which ends in January. Analysts had estimated $0.61 per share.
“We had a great quarter.
We have a lot of success,” Block said on “Mad Money.” “Our business looks
strong in the fourth quarter, it looks good for next year, and we are in a
great position to advise these customers.”
For Salesforce’s fiscal
third quarter, it reported a per share earnings of $0.75, excluding certain
items, compared with the $0.66 as expected by Refinitiv. Its revenues were $4.5
billion, compared with $4.45 billion, as expected by Refinitiv.
Cramer asked Block if
there was “any delta, actuality, in this quarter that made it so you guided
down the next quarter from what you were supposed to.”
Block, who was appointed
co-CEO with Marc Benioff in August 2018, responded saying, “We’ve got a very
strong track record. We are the fastest-growing enterprise software company at
our size and scale.”
Cramer later said his
focus on the slightly light guidance was because he didn’t want to mislead
viewers.
Block also noted that
Salesforce now expects revenue of $16.99 billion to $17 billion, compared with
the $16.9 billion average analyst estimate, according to Refinitiv.
Additionally, he
reiterated the call made at last month’s Dreamforce Conference by Chief
Financial Officer Mark Hawkins, who said Salesforce will double in size by
fiscal 2024, reaching revenue that year of $34 billion to $35 billion.
“There is a lot of great
opportunities. Digital transformation is everywhere,” Block said, “and that’s why
companies are coming to us as their trusted advisor, and it’s a very exciting
time to be in the market.”
According to a report by
CNBC, Salesforce shares have climbed 18% this
year, but they’ve underperformed the S&P 500, which has gained 23%, and
have returned far less than smaller cloud companies such as ServiceNow, Shopify
and Veeva.
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