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What: Shares of salesforce.com have jumped today, up by 8% as of 12:54 p.m. ET, after the company reported solid fourth-quarter earnings and issued rosy guidance.
So what: Revenue in the fourth quarter came in at $1.81 billion, up 25% from a year ago. Unbilled deferred revenue similarly grew 25% to $7.1 billion. By the time you get to the bottom line, we're looking at $0.19 per share in adjusted earnings. Both revenue and earnings per share were right on target with consensus estimates, and Salesforce is closing out its fiscal 2016 with all-time highs in large transactions.
Now what: First-quarter guidance easily impressed investors as well. Revenue should be in the range of $1.885 billion to $1.895 billion, with adjusted earnings per share of $0.23 to $0.24. Compare those forecasts to the $1.86 billion in sales and $0.21-per-share profit that analysts were expecting. Full-year fiscal 2017 revenue should be right around $8.1 billion. Significantly, Salesforce's management indicated that the company is not experiencing any macroeconomic impacts that other cloud-based enterprise players are getting hurt by.
The article Why salesforce.com Jumped Today originally appeared on Fool.com.
Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool recommends Salesforce.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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