Shares of the San Francisco-based cloud computing company Salesforce.com Inc. CRM fell 2.74% to $154.15 in after-hours trading on Monday following the release of financial results for the final quarter of fiscal 2019, which ended on Jan. 31.
Salesforce.com recorded non-GAAP diluted earnings of 70 cents per share and GAAP diluted earnings of 46 cents per share, beating consensus by 15 cents on non-GAAP earnings and by 36 cents on GAAP earnings. The beat produced a positive surprise of 27.3% on non-GAAP earnings and of 360% on GAAP earnings.
Compared to the corresponding period of fiscal 2018, non-GAAP diluted earnings increased 48.9% and GAAP diluted earnings grew 64.3%.
Fourth-quarter revenues were $3.6 billion which, compared to the final trimester of fiscal 2018, were 26.3% higher. Salesforce.com beat consensus on total revenues by $40 million.
The chart below shows the trend in total revenues of Salesforce.com for the last six quarters. Salesforce.com is steadily growing its quarterly total revenues.
For the first quarter of fiscal 2020, which will end April 30, 2019, Salesforce.com is projecting total revenues of $3.67 billion to $3.68 billion versus a consensus of $3.7 billion. The company is forecasting non-GAAP diluted earnings per share of 60 to 61 cents versus a consensus of 63 cents.
The company also released figures for full fiscal 2019. Total revenues soared 26% year-over-year to $13.3 billion, operating income increased 17.8% to $535 million and GAAP earnings doubled to $1.11 billion or $1.43 per diluted share. In addition, non-GAAP earnings were $2.75 per diluted share in full fiscal 2019 compared to $1.54 per diluted share in full fiscal 2018.
Total fiscal year 2019 revenues were $12.4 billion from subscription and support and $869 million from professional services and other.
The chart below shows the trend in total revenues of Salesforce.com for the past six full fiscal years through full fiscal 2019. Salesforce.com is steadily increasing its total annual revenues.
The company also informed its shareholders about its expectations on total revenues and non-GAAP earnings for full fiscal 2020. Total revenues are expected to be in the $15.95 billion to $16.05 billion range and non-GAAP earnings per diluted share are predicted to fall into the $2.74 to $2.76 range. Consensus is for total revenues of $15.99 billion and non-GAAP earnings of $2.76 per diluted share.
In addition, the company has a $26 billion to $28 billion revenue target to reach for full fiscal 2023, reflecting a 104% rise from full fiscal 2019. This compares to forecasted revenues of $26.5 billion in the Analyst Estimate section of this GuruFocus webpage.
Before the release of the report on Monday, Salesforce.com closed at $158.5 per share, reflecting 3.66% downside from last week Friday. The share price has increased 16% so far this year for a market capitalization of approximately $121.25 billion, outperforming the S&P 500 ETF by 4%.
The share price at close Monday was 42.4% above the 52-week low of $111.34 and just 4.8% from the 52-week high of $166.15.
Salesforce.com does not distribute a dividend.
Wall Street issued a buy recommendation rating on =Salesforce.com with an average target price of $174.48 per unit, meaning consensus is for 10% stock appreciation within 52 weeks.
Disclosure: I have no positions in any securities mentioned.
