As Salesforce's prepares to report first-quarter earnings, most Wall Street analysts are shrugging off speculation that the company is a takeover target, and are largely bullish on the stock.
Today, after the market close, analysts expect Salesforce to report first-quarter earnings-per-share of $0.14 on revenue of $1.5 billion, which would represent growth of 22.4 percent on the top line, according to FactSet.
Analysts also forecast that billings, an important metric in many software companies that measures customer demand, will hit $1.18 billion.
"The overall momentum for the business continues to be healthy," Samad Samana of FBR Capital Markets told CNBC. "However, the first quarter is a seasonally weaker period. Investors have likely factored that in, and are largely expecting inline to modest upside results."
Salesforce is the leader in the $23 billion customer relationship management (CRM) market, according to research firm Gartner. CRM software allows organizations to manage, organize and track sales leads.
However, the San Francisco-based company's fundamentals have lately taken a back seat to headlines regarding M&A speculation. Specifically, there have been reports that Salesforce hired advisers to work with the company after an approach by a potential suitor.
Since April 29, when these reports surfaced, Salesforce's stock is up 5 percent, while both the S&P 500 and the Nasdaq are basically flat over that same time period. So far this year, the stock is up nearly 20 percent. Analysts at Barclays say that the M&A reports, and the subsequent jump in the stock price, potentially create downside risk for investors in the near-term. Morgan Stanley removed Salesforce from its Best Ideas list.