Salesforce (CRM) Shares Slip 6% on Modest Guidance by TechStockProspector


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									Robert DeFrancesco’s
May 23, 2013

Salesforce (CRM) Shares Fall 6% on Modest Guidance

NOW AVAILABLE: The May 2013 issue of Tech-Stock Prospector for your Amazon
Kindle or Kindle for iPad/iPhone reading app.

Here are some of the topics covered in the May 2013 issue:

*Cloud software shines in Q1 earnings season
*NetSuite shows why it’s a cloud leader
*ServiceNow expanding its addressable market
*Proofpoint raises guidance on key security wins
*SPS Commerce builds its customer base
*Sourcefire raging in networking security
*Adobe Systems gets traction in the cloud
*A valuation reset for Citrix Systems
*Yahoo focuses on content & mobile
*Fusion-IO diversifies its customer portfolio
*LinkedIn disrupts enterprise recruiting
*New growth drivers at Microsoft
*Apple readies its next product cycle
*Akamai sees growth in cloud infrastructure
*Riverbed Technology tries to find footing
*A new capital allocation strategy at Harmonic
*Deal Report: Marketo IPO overview

Order the May 2013 issue of TSP here:


Shares of (CRM, $42.70 after hours) are down 6.5% in after-hours
trading following somewhat light revenue guidance for fiscal Q2 (July).

For the April quarter, Salesforce reported EPS of 10 cents, in line with the consensus
estimate, on revenue of $893 million (+28% y/y), above the consensus of $887.1
million. Subscription and support revenue was up 29% to $842 million.
Deferred revenue advanced 30% year over year to $1.73 billion, but fell 6.9%
sequentially. Unbilled deferred revenue (contracted but not yet billed) was up 33%
year over year and 2.8% sequentially to $3.6 billion.

For fiscal Q2, the company sees EPS of 11 cents to 12 cents (the consensus is 12
cents) on revenue of $931 million to $936 million (the consensus is $934.5 million).

For fiscal 2014 (Jan.), Salesforce looks for revenue of $3.835 billion to $3.875 billion
(+26.5% at the midpoint), vs. the consensus of $3.87 billion.

Salesforce is a pricey stock, so results always need to be spot-on. On a technical
basis, downside levels to watch: the 50-day moving average at $42.96 and the 200-
day moving average at $40.59.


Read the latest issue of Tech-Stock Prospector on your Amazon Kindle or Kindle for
iPad/iPhone reading app.

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Tech-Stock Prospector Managing Editor Rob DeFrancesco has more than 20
years of experience covering the tech sector. He is a former senior writer with
Louis Rukeyser’s Wall Street., launched in 2003, is an investment-research service
focused primarily on the networking, storage, security, wireless and software
sectors. Annual subscription: $350.

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