Salesforce Inc., the leading customer-relations management software company, saw its shares rally in after-hours trading on Wednesday following a strong earnings report that surpassed Wall Street expectations.
Salesforce’s shares soared as much as 6% in after-hours trading, building on a 1.5% increase during the regular session, which brought the stock to a close at $215.04.
The company’s third-quarter forecast shows great promise, with adjusted earnings projected to be between $2.05 and $2.06 per share. Additionally, Salesforce anticipates revenue ranging from $8.7 billion to $8.72 billion. In comparison, analysts had predicted an average of $1.84 per share on revenue totaling $8.67 billion.
For the full year, Salesforce has high hopes for continued success, forecasting adjusted earnings of $8.04 to $8.06 per share on revenue amounting to $34.7 billion to $34.8 billion. Analysts’ estimates fall slightly behind at $7.42 per share on revenue of $34.66 billion.
In the past year, Salesforce has experienced significant growth. Adjusted earnings have risen from $1.19 per share to an impressive $2.12 per share in the recent period. Revenue has also seen a boost to $8.6 billion, up from $7.72 billion in the same period last year.
Upcoming Event and Future Plans
The release of this positive report comes just before Salesforce’s annual Dreamforce conference, scheduled to take place from September 12-14 at San Francisco’s prestigious Moscone Center—arguably one of the biggest artificial intelligence events in the United States.
Overall, Salesforce’s robust earnings report has generated considerable anticipation leading up to the company’s upcoming conference and instills confidence in its future prospects.