It’s a big day for SalesForce.com (NYSE: CRM). The company will be announcing it Q3 results after markets close on Tuesday. The company’s Q3 earnings will be a reflection of the global I.T market amidst increased uncertainties due to issues such as the ongoing trade war between the U.S and China.
Investors will be looking to see whether the results can better the company’s strong numbers in Q2. One of the factors that will play a role in its numbers is the recent purchase of Tableau for $15.3 billion.
Looking back at Q2, the company beat analysts’ expectations in both top-line and bottom-line numbers. Its core revenue drivers, Sales Cloud and Service Cloud grew by 13% and 22% respectively in Q2. Sales Cloud Revenues stood at $1.13 billion in Q2, while Service Cloud revenues stood at $1.09 billion in the quarter. Overall, the company’s revenues for Q2 stood at $4 billion and bettered the $3.95 billion that investors were expecting in the quarter. The company’s EPS in that quarter stood at $0.66, much higher than the $0.47 that analysts were expecting.
This quarter, analysts are expecting the company to report a revenue growth of 30%, driven by its recent acquisitions. The consensus EPS for the quarter stands at $0.66 on revenues of $4.52 billion. There is also a huge expectation for this stock in this stocks volatility. In the options markets, the volatility implies that traders expect an over 3% move in either direction.
Looking at the charts, the stock had little movement on Monday and closed the day lower by 1.16%. It traded between $163.21 and $158.10 before closing the day at $161. Volumes in the day stood at 5.14 million.
Salesforce.com creates enterprise cloud software solutions mainly focused on customer relationship management. Its services help customers in data storage, monitoring, opportunity forecasting among others. It has its headquarters in San Francisco California.