(AOF) – Salesforce (+6.51% to $245.30) has taken up residence at the top of the Dow Jones index, galvanized by better than expected results. Building on this solid performance, the provider of remote customer relationship management solutions has raised its annual objectives, already revised upwards at the end of August. “Although Salesforce’s period of very rapid operating margin expansion has already occurred over the past 12 months following significant layoffs, we believe the free cash flow spigot is starting to turn. ‘open,’ explains JPMorgan.
In the third quarter, ended at the end of October, of the 2024 financial year, the American firm generated 1.37 billion in free cash flow, or $468 million more than expected by analysts.
Net income came to $1.224 billion, or $1.25 per share, compared with a profit of $210 million a year earlier at the same time, or 21 cents per share. Excluding exceptional items, earnings per share came to $2.11, beating consensus by 6 cents.
Salesforce revenues increased by 11% to 8.72 billion dollars against 8.715 billion expected. They increased by 10% excluding the impact of exchange rates.
In the fourth quarter, the group is targeting revenues between $9.18 and $9.23 billion, an increase of 10%. Adjusted earnings per share are expected to be between $2.25 and $2.26.
Faster, higher, stronger
Salesforce increased its objectives for the financial year, as it had already done at the end of August. Revenues are forecast between $34.75 billion and $34.8 billion, up 11% from $34.7 billion to $34.8 billion previously.
Adjusted earnings per share are expected between $8.18 and $8.19 compared to $8.04 to $8.06 previously. Finally, the American group is targeting an adjusted operating margin of 30.5%, compared to 30% previously.
© 2023 Agence Option Finance (AOF) – All reproduction rights reserved by AOF. AOF collects its data from the sources it considers the safest. However, the reader remains solely responsible for their interpretation and use of the information made available to them. The reader must therefore hold AOF and its contributors harmless from any claim resulting from this use. Agence Option Finance (AOF) is a brand of the Option Finance group
Did you like this article ? Share it with your friends using the buttons below.
