Salesforce.com (CRM) will announce numbers for its quarter ended July this afternoon after the close of regular market trading. Wall Street analysts expect the company to report earnings of $0.22 per share on revenue of $2 billion for the quarter. The company had guided for EPS in a range of $0.21 to $0.22 and revenue of around $2 billion.
Salesforce is most often valued on its bookings numbers, and currently Wall Street expects bookings of $1.95 billion for the quarter ended July.
With the Brexit issue having clocked currencies across the pond pretty hard and the uncertainty around the region as a whole, the company could be a bit more cautious this quarter when it talks about guidance and billings. Salesforce gets just less than 20% of its revenue from the European Union, so maybe a bit of caution is warranted.
Another area of focus will be the large number of acquisitions the company has been making this year, including the $2.8 billion takeover of Demandware. Salesforce has already, in the first eight months of 2016, made more acquisitions than it did in 2015 as it races to beat Oracle (ORCL) as the first company to hit $10 billion in cloud software revenue.
For the current quarter, which ends in October, consensus expectation are for EPS of $0.24 on revenue of $2.1 billion.
Most investors and analysts are already looking forward to the company's huge annual party, known as Dreamforce, in San Francisco. That's where CEO Marc Benioff usually makes all his splashy announcements.
My take is that Salesforce will beat estimates for the quarter ended July by its usual penny or two and then nudge guidance slightly higher, which should be enough to pop the shares a bit. Options are pricing in a $4.50 per share move (either direction) post earnings, although CRM often moves in the double-digit percentage range after earnings announcements.
I am sitting on the sidelines for the Benioff show this time around. Good luck however you are positioned going into tonight's earnings event, whether you are a "good guy" or a "darksider."