Tuesday, September 27, 2022
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Salesforce, Williams-Sonoma Easily Top Estimates

CRM’s earnings of $1.48 per share easily surpassed the 91 cents per share, swinging to growth year over year.

4 min read

This story originally appeared on Zacks

Fresh record closing highs are how the S&P 500 and Nasdaq greeted the closing bell this Hump Day, with both indexes staying just buoyant enough to keep in the green, by +0.22% and +0.15%, respectively. The Dow also put up another very slight positive trading day, +0.11%, and still within a percentage point of its all-time closing high. The Russell 2000 outperformed the other indexes, though not by as much as earlier this week, +0.37%.

San Francisco-based salesforce.com CRM swooped past estimates on its Q2 earnings report after the bell today, with earnings of $1.48 per share easily surpassing the 91 cents per share, and swinging to growth year over year, from $1.44 per share reported in Q2 20. Revenues of $6.34 billion grew by +23% year over year, and outpaced the $6.23 billion in the Zacks consensus.

CEO Marc Benioff told investors he has “never seen better momentum” than he does right now, with accelerating digital transformation accommodative to salesforce’s offerings. Guidance for Q3 and full-year 2021 are up to $6.79 billion and $26.3 billion from the previous consensus $6.63 billion and $25.94 billion, respectively. The company has no quarterly earnings misses going back more than five years, and shares are up +3% in late trading.

Williams-Sonoma WSM is performing even better in the after-hours, +12.5% following its Q2 earnings report this afternoon. Earnings of $3.24 per share outshined the estimated $2.55, on $1.95 billion which outstripped the $1.80 billion expected. Further, the company has announced a 20% quarterly dividend and a $1.25 billion share buyback. Williams-Sonoma has not posted an earnings miss since Q4 2015.

Ulta Beauty ULTA also released Q2 earnings Wednesday after the bell, destroying bottom line estimates — $4.56 per share versus $2.49 consensus — on $1.97 billion in sales, which easily topped the $1.79 billion expected. Comps for the quarter were +13.1% (versus the more relevant Q2 2019) on continued improvements in the beauty industry. The company’s trailing 4-quarter average earnings beat is a very high 200%. Shares are up +4.5% in late trading.

Database software solutions provider Snowflake SNOW, however, posted a big miss on its bottom line: -64 cents per share versus -15 cents in the Zacks consensus. Its top line posted a beat — $272.2 million versus $255.2 million expected; more than double year over year — on triple-digit growth in productivity revenue. But weaker Q3 sales guidance sent the stock lower initially after the release; shares are now +4%.

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