Salesforce.com (CRM) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Salesforce.com, driven by higher revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Salesforce.com is expected to report quarterly earnings of $2.54 per share, reflecting a +4.1$9.74 billion, up 6.6% from the previous year [3]. - The consensus EPS estimate has been revised 0.03% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Salesforce.com is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.76%, indicating a likelihood of beating the consensus EPS estimate [10][11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which increases the chances of a positive surprise to nearly 70% [8]. Historical Performance - In the last reported quarter, Salesforce.com exceeded the expected earnings of $2.60 per share by delivering$2.78, resulting in a surprise of +6.92% [12]. - Over the past four quarters, Salesforce.com has beaten consensus EPS estimates three times [13]. Conclusion - While Salesforce.com is positioned as a compelling earnings-beat candidate, other factors should also be considered when evaluating the stock ahead of its earnings release [16].