Salesforce Shares Jump as Profit Outstrips Forecasts
Salesforce.com shares popped higher as reported a profit that edged Wall Street expectations and it handed in an outlook for the current quarter that easily surpassed current forecasts.
The company, which specializes in so-called "cloud" computing — or hosting applications for business clients — earning 28 cents a share in its fiscal first quarter excluding one-time items, compared with 30 cents a share a year earlier.
On the revenue side, Salesforce said it garnered $504 million, against $377 million last year.
Analysts who follow Salesforce saw it earning 27 cents a share on sales of $483 million, according to a consensus estimate from Thomson Reuters.
Shares of the company were up more than 7 percent in late trading. Get after-hour quotes for Salesforce.com here.
Salesforce said that it sees earnings of 29 cents to 30 cents a share in the current quarter. That range compares with a consensus estimate from equity analysts that now stands at 26 cents a share.
The company sees revenue for the fiscal second quarter of between $526 million and $528 million, versus an estimate of $506 million.
The stock finished the regular New York Stock Exchange session more than 1 percent higher at $135.81.