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Omar Venerio
Omar Venerio
Articles (1736) 

Wednesday Morning Market Highlights

Markets down, shares of Salesforce fall on earnings

US Markets

U.S. stocks were in the red on Wednesday morning after yesterday's rally. The Dow fell 0.06% to 29,806, the S&P 500 index lost 0.09% to 3,659 and the Nasdaq Composite Index was down 0.35% to 12,311.


• HollyFrontier Corp ​(NYSE:HFC) +4.9%

• Pfizer Inc (NYSE:PFE) +4%

• Occidental Petroleum Corp (NYSE:OXY) +3.9%

• UDR Inc (NYSE:UDR) +1.8%


• Genuine Parts Co (NYSE:GPC) -4.2%

• Gap Inc (NYSE:GPS) -2.2%

• ServiceNow Inc (NYSE:NOW) -1.8%

• Carmax Inc (NYSE:KMX) -2.6%

• Advance Auto Parts Inc (NYSE:AAP) -3.1%

• D.R. Horton Inc (NYSE:DHI) -1.6%

Global Markets

The main European stock markets traded in the green. The U.K.'s FTSE 100 gained 0.93%, France's CAC 40 dipped 0.30%, Germany's Dax was down 0.61% and Spain's Ibex 35 rose 0.43%.

In Asia, Japan's Nikkei 225 gained 0.05%, India's BSE Sensex fell 0.08%, Hong Kong's Hang Seng lost 0.13% and China's Shanghai Composite slid 0.07%.

Salesforce releases earnings report

Shares of Salesforce.com, inc. (NYSE:CRM) fell 8.5% on Wednesday morning after the company announced financial results for its third quarter of fiscal 2021. It posted EPS of $1.74, beating analysts' estimates by 99 cents, on revenue of $5.42 billion, which grew 20.2% year-over-year and beat expectations by $160 million.

CEO Marc Benioff had the following to say:

"We had another record quarter, and now we're raising our FY21 revenue guidance to $21.11 billion at the high end and initiating FY22 guidance of $25.5 billion. No other major enterprise software company is growing at this rate…We're rapidly moving to an all-digital world, where work happens wherever people are. Our results are being driven by the success of our customers and the relevance of our Customer 360 Platform in this new normal."

In the quarter, the GAAP operating margin was 4.1% and the non-GAAP operating margin reached 19.8%.

The cash generated from operations was $340 million, an increase of 14% year-over-year. Total cash, cash equivalents and marketable securities ended the quarter at $9.49 billion.

Looking ahead to the fiscal fourth quarter, the company expects EPS in the range of 5 to 6 cents. It also raised its full fiscal 2021 revenue guidance to a range of $21.10 billion to $21.11 billion, which would represent a gain of 23% year over year.

The company also announced it has signed an agreement to acquire messaging software platform Slack Technologies (NYSE:WORK) in a cash and stock deal valued at $27.7 billion.

At the end of September, First Eagle Investment (Trades, Portfolio) boosted its holding in the stock by 17% to 1,660,917 shares. Mario Gabelli (Trades, Portfolio) initiated a new position in the stock with 2,410 shares.

Disclosure: The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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