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Salesforce Stock Plummets 15% on Guidance Miss
May 30, 2024 12:29 PM - Davit Kirakosyan
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Salesforce (NYSE:CRM) shares fell more than 15% in pre-market today after the company reported guidance for the current quarter that fell significantly short of analyst expectations, overshadowing its fiscal first-quarter earnings, which had surpassed Wall Street forecasts.
For the fiscal second quarter, Salesforce expects adjusted EPS to be between $2.44 and $2.36, with revenue ranging from $9.20 billion to $9.25 billion, both below Wall Street estimates of $2.40 EPS and $9.34 billion in revenue.
For Q1, Salesforce posted an adjusted EPS of $2.44 on revenue of $9.13 billion, compared to the analysts' predictions of $2.37 EPS on $9.15 billion in revenue. Subscription and support revenues for the quarter were $8.59 billion, marking a 12% increase year-over-year. Professional services and other revenues reached $600 million, a 3% year-over-year increase.
For the full fiscal year 2024, Salesforce maintained its revenue guidance between $37.7 billion and $38.0 billion and adjusted earnings per share in the range of $9.86 to $9.94.
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