Salesforce Shares Rise Ahead of Earnings as Analysts Expect Big Revenue Beat
Salesforce's shares rose 0.39% to $209.99 on Monday as investors awaited its earnings report, due out after the close on Wednesday. Analysts expect revenue of around $11.32 billion, in line with the company's guidance of between $11.27 and $11.35 billion.
The options market suggests a bigger swing following the earnings release, with a 7% shift corresponding to approximately $14.70 per share and translating to around $12 billion in market capitalization.
While Salesforce reported a 13.3% increase in first-quarter revenue to $11.13 billion, removing the contribution from Informatica results in an adjusted figure of $10.69 billion, representing an 8.7% rise compared to last year's Q1 revenue.
The company also announced plans to accelerate its share buyback program and raise $25 billion in debt, which will impact cash-flow growth.