Investors are feeling bullish on Salesforce (NYSE:CRM) after the company reported better-than-expected earnings for the third quarter of fiscal year 2021. Shares of the cloud-based software giant surged by more than 5% in after-hours trading following the release of its financial results on December 1.
Salesforce reported a revenue of $5.42 billion for the quarter, representing a 20% year-over-year increase and surpassing analysts’ expectations of $5.25 billion. The company also reported adjusted earnings per share of $1.74, exceeding the consensus estimate of $0.75.
One of the key drivers of Salesforce’s strong performance was its core Customer 360 platform, which saw a 25% year-over-year growth in revenue. The company’s strategic acquisitions, including the recent $27.7 billion purchase of workplace messaging app Slack, have also contributed to its growth.
Salesforce also raised its revenue guidance for the full fiscal year, now expecting to generate between $21.1 billion and $21.1 billion, up from its previous forecast of $20.8 billion to $20.9 billion. The company’s strong outlook and continued momentum in the cloud computing space have bolstered investors’ confidence in its long-term growth prospects.
Analysts have been quick to react to Salesforce’s impressive performance, with many upgrading their price targets for the stock. Several Wall Street firms, including Morgan Stanley, JP Morgan, and Citigroup, have raised their price targets for Salesforce to reflect its strong earnings beat and improved guidance.
Investors are also optimistic about Salesforce’s strategic positioning in the rapidly growing cloud computing market, which is expected to continue expanding as businesses shift towards digital transformation and remote work solutions. Salesforce’s diverse product offerings, strong customer relationships, and robust growth trajectory have positioned it as a leader in the industry.
The bullish sentiment surrounding Salesforce reflects investors’ confidence in the company’s ability to capitalize on the digital transformation trend and drive sustained growth in the long term. With a strong earnings beat, raised guidance, and positive analyst sentiment, Salesforce appears well-positioned to continue outperforming the market and delivering value to its shareholders.