Salesforce.com (NYSE:CRM) It is scheduled to report its fiscal Q3 2022 (ending October 2021) results on Tuesday, November 30. We expect CRM to miss consensus estimates for earnings but be in line with revenue. The company has reported better than expected revenue and earnings figures in each of the last four quarters. CRM’s revenue growth in the first half of fiscal 2022 was primarily due to continued demand for its cloud offerings as organizations continue their transition towards digitization. We expect the third quarter FY2022 results to follow suit.
Our forecast shows that Salesforce Valuation $302 per share, which is 3.8% higher than the current market price of $291. View our interactive dashboard analysis Salesforce’s pre-earnings: What to expect in Q3? for more information.
(1) Revenue is expected to be in line with consensus estimates
salesforce revenue For the full year 2021 were $21.3 billion — up 25%, primarily with higher growth in cloud offerings. Trefis estimates CRM’s fiscal Q3 2022 (ending October 2021) revenue to be approximately $6.80 billion, in line with the consensus estimate of $6.79 billion. We expect cloud offerings to accelerate growth in Q3. Our Dashboard is on salesforce revenue provides more details on the company’s operating segments along with our forecast for the next two years.
(2) EPS likely to miss consensus estimates
CRM’s Q3 2022 (ending October 2021) earnings per share is expected to be $0.80 per Trefis analysis, lower than the consensus estimate of $0.92. The company’s net income margin grew in 2021 primarily due to a tax benefit of $1.5 billion, which raised the diluted EPS figure from $0.15 in fiscal year 2020 to $4.38 in fiscal 2021. In FY 2022, we expect the company’s net income margin to be around 7.4. % which would mean EPS of $2.08 in FY2022.
(3) The stock price is estimated to be 4% higher than the current market price
going by us Salesforce Valuation, with FY2023 EPS estimate of $2.55 and P/E multiplier 118.2x, this translates to a price of $302, which is 3.8% higher than the current market price of $291.
Note: P/E multipliers are based on year-end share price and reported (or expected) adjusted earnings for the full year.
While CRM stock isn’t likely to rise much in the near term, there are other stocks that look like this. CRM better bet than stock, Too, salesforce.com peer comparison Summarizes how the company performs against peers on key metrics.
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Returns Nov’21 MTD  YTD  2017-21 
CRM Return -4% 28% 315%
S&P 500 Returns 1% 22% 105%
Trefis MS Portfolio Returns -3% 46% 297%
 Month-to-date and Year-to-date as of 11/29/2021
 Cumulative Total Return since 2017
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