Wedbush Issues Pessimistic Outlook for Salesforce Earnings

Key Points

• Wedbush has lowered its Q1 2027 EPS estimate for Salesforce from $2.21 to $2.18, while the consensus estimate for the full year remains at $7.46 per share.
• Salesforce's recent quarterly results showed an EPS of $2.91, exceeding expectations, with a net margin of 16.87% and revenues of $10.24 billion.
• Despite mixed analyst ratings and price target adjustments, Salesforce maintains a consensus rating of "Moderate Buy" with an average target price of $331.34.

Salesforce Inc. (NYSE:CRM - Free Report) - Wedbush decreased their Q1 2027 EPS estimates for shares of Salesforce in a research note issued to investors on Thursday, September 4th. Wedbush analyst D. Ives now forecasts that the CRM provider will earn $2.18 per share for the quarter, down from their previous estimate of $2.21. The consensus estimate for Salesforce's current full-year earnings is $7.46 per share.

Salesforce (NYSE:CRM - Get Free Report) last announced its quarterly earnings results on Wednesday, September 3rd. The CRM provider reported $2.91 EPS for the quarter, topping the consensus estimate of $2.78 by $0.13. Salesforce had a net margin of 16.87% and a return on equity of 13.27%. The company had revenue of $10.24 billion for the quarter, compared to analyst estimates of $10.14 billion. During the same quarter in the prior year, the business posted $2.56 EPS. Salesforce's quarterly revenue was up 9.8% on a year-over-year basis. Salesforce has set its FY 2026 guidance at 11.330-11.370 EPS. Q3 2026 guidance at 2.840-2.860 EPS.

Several other research analysts have also commented on CRM. Robert W. Baird dropped their price target on shares of Salesforce from $365.00 to $325.00 and set an "outperform" rating on the stock in a research note on Thursday. Needham & Company LLC restated a "buy" rating and set a $400.00 price target on shares of Salesforce in a research note on Thursday. DA Davidson upgraded shares of Salesforce from an "underperform" rating to a "neutral" rating and set a $225.00 price target on the stock in a research note on Friday, August 15th. Stifel Nicolaus dropped their price target on shares of Salesforce from $375.00 to $325.00 and set a "buy" rating on the stock in a research note on Wednesday, August 13th. Finally, Barclays dropped their price target on shares of Salesforce from $347.00 to $316.00 and set an "overweight" rating on the stock in a research note on Monday, August 18th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $331.34.

Salesforce Stock Performance

Shares of CRM opened at $250.40 on Monday. The company's fifty day moving average is $255.64 and its 200-day moving average is $266.32. Salesforce has a 12 month low of $226.48 and a 12 month high of $369.00. The firm has a market cap of $238.38 billion, a price-to-earnings ratio of 36.40, a price-to-earnings-growth ratio of 2.29 and a beta of 1.22. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 0.14.

Institutional Trading of Salesforce

Hedge funds have recently bought and sold shares of the stock. AIA Group Ltd boosted its holdings in Salesforce by 8.0% in the 1st quarter. AIA Group Ltd now owns 32,885 shares of the CRM provider's stock valued at $8,825,000 after purchasing an additional 2,436 shares during the period. Notis McConarty Edward raised its stake in shares of Salesforce by 71.6% in the 1st quarter. Notis McConarty Edward now owns 3,844 shares of the CRM provider's stock valued at $1,032,000 after buying an additional 1,604 shares in the last quarter. Aberdeen Group plc raised its stake in shares of Salesforce by 1.5% in the 1st quarter. Aberdeen Group plc now owns 1,036,482 shares of the CRM provider's stock valued at $274,802,000 after buying an additional 15,782 shares in the last quarter. Leith Wheeler Investment Counsel Ltd. raised its stake in shares of Salesforce by 43.0% in the 1st quarter. Leith Wheeler Investment Counsel Ltd. now owns 104,834 shares of the CRM provider's stock valued at $28,133,000 after buying an additional 31,537 shares in the last quarter. Finally, Alecta Tjanstepension Omsesidigt raised its stake in shares of Salesforce by 121.9% in the 1st quarter. Alecta Tjanstepension Omsesidigt now owns 355,000 shares of the CRM provider's stock valued at $95,222,000 after buying an additional 195,000 shares in the last quarter. 80.43% of the stock is owned by institutional investors.

Insider Activity

In related news, CEO Marc Benioff sold 2,250 shares of the company's stock in a transaction on Thursday, September 4th. The shares were sold at an average price of $241.50, for a total transaction of $543,375.00. Following the completion of the sale, the chief executive officer directly owned 11,911,571 shares of the company's stock, valued at approximately $2,876,644,396.50. This represents a 0.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last ninety days, insiders have sold 66,077 shares of company stock worth $16,885,773. 3.00% of the stock is currently owned by corporate insiders.

Salesforce Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 9th. Investors of record on Wednesday, September 17th will be issued a dividend of $0.416 per share. This represents a $1.66 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Wednesday, September 17th. Salesforce's dividend payout ratio is currently 24.13%.

Salesforce Company Profile

Salesforce, Inc provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company's service includes sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and artificial intelligence, and deliver quotes, contracts, and invoices; and service that enables companies to deliver trusted and highly personalized customer support at scale.

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