Ahead of the Bell: Salesforce.com falls
NEW YORK (AP) — Salesforce.com's stock declined nearly 5 percent in premarket trading on Friday as the cloud computing company provided a third-quarter adjusted earnings forecast below Wall Street's expectations.
Late Thursday Salesforce.com said that it anticipates third-quarter adjusted earnings between 31 cents and 32 cents per share. This is below the 34 cents per share that analysts surveyed by FactSet had expected.
The company also reported second-quarter financial results that topped Wall Street expectations.
Jefferies' Ross MacMillan said in a client note that Salesforce.com's third-quarter earnings guidance is below analysts' estimates because of dilution from its Buddy Media acquisition.
Salesforce.com announced in June that it was buying the marketing company for $689 million.
MacMillan said Salesforce.com's second-quarter results were very solid. He kept a "Buy" rating.
Karl Keirstead of BMO Capital Markets said that Salesforce.com looks like it is being somewhat cautious in its projections because of the weak economy.
The analyst maintained an "Outperform" rating.
Shares of Salesforce.com Inc. fell $7.20, or 4.9 percent, to $139.57 before the market open.