Salesforce.com is scheduled to report earnings after Tuesday's close. Salesforce.com hit a record high of $84.48 in 2016 and is currently trading near $81. Since 2015, the stock has been comfortable trading below $84 and can easily breakout of its long mulit-year trading range if it reports strong earnings. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview:
Salesforce.com is expected to earn $0.25/share on $2.28 billion in revenue. Meanwhile, the so-called Whisper number is $0.26. The Whisper number is the Street's unofficial view on earnings.
Company Profile & Various Businesses:
Here is a complete company profile and description of the various businesses courtesy of my friends at Thomson Reuters Eikon:
Salesforce.com inc., incorporated on February 3, 1999, is a provider of enterprise cloud computing solutions, with a focus on customer relationship management (CRM). The Company's Customer Success Platform, including sales force automation, customer service and support, marketing automation, community management, analytics, application development, Internet of Things (IoT) integration and its professional cloud services, provide the next-generation platform of enterprise applications and services. The Company delivers its solutions as a service through all the Internet browsers and on mobile devices. It sells to businesses of all sizes and in a range of industries across the world on a subscription basis, primarily through its direct sales and also indirectly through partners.
The Company provides enterprise cloud computing solutions that include applications and platform services, as well as professional services to facilitate the adoption of its solutions. Its service offerings include Sales Cloud, Service Cloud, Marketing Cloud, Community Cloud, Analytics Cloud, IoT Cloud and App Cloud. The Sales Cloud enables companies to store data, monitor leads and progress, forecast opportunities, gain insights through relationship intelligence and collaborate around any sale on desktop and mobile devices. The Service Cloud enables companies to deliver personalized customer service and support. Its customers use the Service Cloud to connect their service agents with customers at anytime and anywhere, on various devices and across multiple channels, such as phone, e-mail, chat, self-service Web portals, social networks, online communities and directly within their own products and mobile applications.
The Marketing Cloud enables companies to plan, personalize and optimize one-to-one customer interactions. With the Marketing Cloud, customer data can also be integrated with the Sales Cloud and Service Cloud in the form of leads, contacts and customer service cases to give companies a view of their customers. The Community Cloud enables companies to engage directly with groups of people by giving them access to relevant information, applications and experts, creating destinations for customers, partners and employees to collaborate. The Analytics Cloud is an application for business intelligence powered by the Company's Wave platform. It enables companies to deploy sales, service, marketing and custom analytics applications using any data source. The IoT Cloud connects various events from devices, sensors, applications and more from the Internet of Things to Salesforce, enabling companies to take action in a connected world. The App Cloud is an application development platform that includes Force, Heroku, Enterprise and Lightning, along with shared identity, data and network services to enable companies to deliver connected applications for business need. In addition, the App Cloud's platform services include Trailhead, an interactive learning environment for all Salesforce developers, and the AppExchange, Salesforce's enterprise application marketplace.
The Company offers professional cloud services, including consulting, deployment, training, user-centric design and integration to its customers to facilitate adoption of its cloud solutions. The Company also offers architects and innovation program teams that act as advisors to plan and execute digital transformations for its customers. It offers various education service offerings to its customers and partners, ranging from introductory online courses to advanced architecture certifications. With the Trailhead learning platform, the Company's customers and partners have online access to courses that address topics, such as using and administering its services and developing on its platform. It also offers instructor-led and online courses to certify its customers and partners on architecting, administering, deploying and developing its services. In addition, it offers a selection of online educational classes available at no charge to customers that subscribe to its customer service plans.
Competition:
The Company competes with other tech companies such as: Microsoft Corporation, Oracle Corporation, NetSuite Inc, and SAP SE, just to name a few.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
