Salesforce beats second-quarter expectations — but its stock sinks up to 3% (CRM)

Marc Benioff Salesforce.com

Salesforce’s second quarter revenues were up 26% year-over-year Tuesday. The company hit $2.56 billion, beating analyst expectations of $2.51 billion.

The company reported:

Revenues — $2.56 billion. Analysts had forecast $2.51 billion.
Earnings per share (adjusted) — $0.33 per share. Wall Street was expecting $0.32 a share.
Subscription and support revenues — $2.37 billion, up 26% year-over-year.
Professional services and other revenues — $193 million, up 28% year-over-year.
Estimated revenues for Q3 — $2.64 billion to $2.65 billion. Analysts had previously projected revenues of $2.61 billion for the period.
Estimated earnings per share for Q3 (adjusted) — $0.36 a share to $0.37 a share. Analysts had previously forecast earnings of $0.36 for the quarter.
Estimated revenues for fiscal year 2018 — $10.35 billion to $10.40 billion. Analysts had previously expected revenues of $10.28 billion for the year.
Estimated earnings per share for fiscal year 2018 (adjusted) — $1.29 per share to $1.31 earnings per share. Wall Street had previously forecast earnings of $1.30 a share.

Despite the beat on the top and bottom lines and the somewhat better-than-expected third-quarter forecast, Salesforce's stock was off $1.75, or nearly 2%, to $91.20 a share in recent after-hours trading.

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