Earnings Week Ahead: Salesforce Set for Another Beat, eBay Faces Challenging Macro
Here is your Pro preview of the upcoming major earnings reports next week: Salesforce, eBay, Zoom, and Weekday.
Salesforce (NYSE:CRM) is set to unveil its Q4/24 earnings on Feb 28, after the market closes. During its latest quarterly announcement in Nov 2023, Salesforce provided its guidance for Q4, projecting EPS to be between $2.25 and $2.26, with revenues forecasted between $9.18 billion and $9.23 billion.
The current consensus among analysts predicts a Q4 EPS of $2.27 and revenues of $9.22B.
InvestingPro’s EPS Forecast Trend shows a significant upward revision in analysts' EPS expectations for Salesforce, with a 44.8% increase from $1.56 to $2.27 per share over the last 12 months.
Source: Investing.com
Despite a notable increase of 27% in the company's stock price since its latest quarterly announcement, Investing Models indicate that Salesforce's stock is still undervalued, estimating its fair value at $327.94, which suggests a 12% potential upside from the last closing price.
Source: Investing.com
Recent analyses from Wall Street firms shed further light on Salesforce's prospects:
BofA Securities observed improved deal activity, although sales cycles face challenges, including the need for additional executive approvals. The firm noted stable Sales and Service Cloud deals, balanced results across major verticals, and increased interest/pipeline in Data Cloud.
Baird upgraded Salesforce from Neutral to Outperform, citing the company's margin delivery and the potential for growth from price increases, a rebound in front office spending, and improved sales execution.
Wedbush analyst Daniel Ives believes Salesforce is not fully recognized for its incremental AI growth potential.
Deutsche Bank maintained a Buy rating
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