This Week in Earnings: Salesforce Leads Tech Charge, Zoom Up on Hybrid Work Demand
Investing.com | Mar 02, 2024 20:32
- Salesforce: Stock up 3% with Q4 earnings surpassing forecasts, initiating a quarterly dividend and expanding buyback program.
- Zoom: Shares surge 8% on Q4 beat, buoyed by hybrid work demand and a $1.5 billion share buyback.
- eBay: Shares rise over 7% after Q4 results beat estimates, coupled with a share repurchase expansion and dividend increase.
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In this week's earnings recap, we delve into the latest quarterly reports from four industry giants— eBay (NASDAQ:EBAY), Zoom Video Communications (NASDAQ:ZM), Salesforce (NYSE:CRM), and Snowflake (NYSE:SNOW).
Salesforce/h2
Salesforce experienced a 3% increase in its stock price on Thursday following the announcement of Q4 earnings that surpassed expectations, the initiation of its first quarterly dividend, and an increase in its stock repurchase program.
For Q4, Salesforce reported an EPS of $2.29, a significant rise from $1.68 the previous year, with revenue reaching $9.29 billion, up from $8.38 billion. These results exceeded analyst forecasts of $2.27 EPS on $9.22 billion in revenue.
Despite these strong results, Salesforce's projection for full-year revenue was below market expectations, hinting at a potential slowdown in cloud and tech spending amidst high-interest rates and inflation.
The company declared its first-ever quarterly dividend of $0.40 per share and increased its share buyback program by an additional $10 billion.
Post-earnings, several Wall Street firms raised their price targets on Salesforce, including BofA Securities, which adjusted its target to $360.00 from $350.00, noting that 'a multi-year AI growth cycle coming into view'.
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