Earnings Performance
Salesforce reported adjusted earnings of $2.44 per share, slightly above the $2.38 per share expected by analysts surveyed by LSEG. However, the company’s revenue for the quarter came in at $9.13 billion, missing the anticipated $9.17 billion. This revenue shortfall was a key factor in the sharp decline in Salesforce’s stock price.
Guidance Disappoints
Looking ahead, Salesforce provided guidance for the current quarter that also disappointed investors. The company expects adjusted earnings per share to be between $2.34 and $2.36 on revenue of $9.2 billion to $9.25 billion. Analysts had forecasted adjusted earnings per share of $2.40 on revenue of $9.37 billion, according to LSEG. This conservative outlook further pressured Salesforce’s stock in after-hours trading.
