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Salesforce co-CEO Marc Benioff speaks at the grand opening of the Salesforce Tower in San Francisco in May 2018.
Wall Street offered on Wednesday glowing analysis of Salesforce’s third-quarter earnings report, which included a hefty profit beat and 26 percent revenue growth from a year earlier.
The business-software maker also issued an upbeat outlook for sales in the fourth quarter and forecast growth ahead in 2019. Management expects fourth-quarter sales growth of 25 percent on a year-over-year basis and for revenue to swell to $16 billion in the upcoming fiscal year.
Many analysts, including Morgan Stanley’s Keith Weiss, reiterated bullish calls following Tuesday’s robust results and praised Salesforce CEOs Marc Benioff and Keith Block for reliable outperformance.
“Salesforce.com is exactly the type of underpriced earnings and free cash flow story that we want to own in today’s volatile environment, where we see strong future growth potential and improving profitability combined with large cap stock liquidity,” Weiss wrote.
“Salesforce.com is one of the best secular stories in software in our view, and has more direct participation in secular demand for mobile, social and cloud than any name we follow,” Weiss added.
The company’s shares rallied in premarket trading Wednesday between its financial results and the flood of positive Wall Street notes. The stock was last seen up 8.8 percent, set to add to a 24 percent climb so far this year; it closed at $127.54 on Tuesday.
Here is what Wall Street is saying about Salesforce’s earnings.
