Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Earnings Week Ahead: Salesforce Set for Another Beat, eBay Faces Challenging Macro

Published 25/02/2024, 10:54
Updated 02/09/2020, 07:05

Here is your Pro preview of the upcoming major earnings reports next week: Salesforce, eBay, Zoom, and Weekday.

Salesforce

Salesforce (NYSE:CRM) is set to unveil its Q4/24 earnings on Feb 28, after the market closes. During its latest quarterly announcement in Nov 2023, Salesforce provided its guidance for Q4, projecting EPS to be between $2.25 and $2.26, with revenues forecasted between $9.18 billion and $9.23 billion.

The current consensus among analysts predicts a Q4 EPS of $2.27 and revenues of $9.22B.

InvestingPro’s EPS Forecast Trend shows a significant upward revision in analysts' EPS expectations for Salesforce, with a 44.8% increase from $1.56 to $2.27 per share over the last 12 months.

CRM

Source: Investing.com

Despite a notable increase of 27% in the company's stock price since its latest quarterly announcement, Investing Models indicate that Salesforce's stock is still undervalued, estimating its fair value at $327.94, which suggests a 12% potential upside from the last closing price.

CRM

Source: Investing.com

Recent analyses from Wall Street firms shed further light on Salesforce's prospects:

BofA Securities observed improved deal activity, although sales cycles face challenges, including the need for additional executive approvals. The firm noted stable Sales and Service Cloud deals, balanced results across major verticals, and increased interest/pipeline in Data Cloud.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Baird upgraded Salesforce from Neutral to Outperform, citing the company's margin delivery and the potential for growth from price increases, a rebound in front office spending, and improved sales execution.

Wedbush analyst Daniel Ives believes Salesforce is not fully recognized for its incremental AI growth potential.

Deutsche Bank maintained a Buy rating on Salesforce, with a price target of $330.00, supported by positive fourth-quarter checks and confidence in the company's AI capabilities within CRM.

eBay

eBay (NASDAQ:EBAY) is scheduled to announce its Q4/23 earnings on February 27, after the market closes.

During its last quarterly earnings report in November 2023, eBay provided its Q4 guidance, anticipating an EPS between $1.00 and $1.05 and revenue ranging from $2.47B to $2.53B.

The current consensus among Wall Street analysts places the EPS at $1.03 and revenue expectations at $2.51B.

InvestingPro's EPS Forecast Trend indicates a shift in analyst EPS predictions for eBay for the upcoming quarter, with a -4.8% adjustment from $1.08 to $1.03 per share over the last 12 months.

EBAY

Source: Investing.com

The company has a track record of surpassing both EPS and revenue forecasts, as depicted in the Forecast vs. Actual Earnings Analysis.

EBAY

Source: Investing.com

However, it's noteworthy that the stock's response to these earnings beats has generally been negative, largely due to the company issuing weaker-than-expected future guidance.

EBAY

Source: Investing.com

Recent significant developments include eBay's announcement in January of a workforce reduction by 1,000 jobs, about 9% of its full-time staff, as a response to the "challenging macroeconomic environment," according to CEO Jamie Iannone. The company also plans to scale back its contracts with its "alternate workforce" in the coming months.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Our ProTips underscore eBay's strengths, such as aggressive share buybacks, a five-year streak of dividend increases, high gross profit margins, and anticipated net income growth, among others.

EBAY

Source: Investing.com

Investing models estimate eBay's fair market at $56.73, suggesting a 29% potential upside from last Friday's closing price, whereas Wall Street analysts predict a less than 4% increase.

EBAY

Source: Investing.com

Zoom Video Communications

Zoom Video Communications (NASDAQ:ZM) is set to unveil its Q4/24 financial results on February 26, after the market closes.

During its latest quarterly report in November 2023, Zoom provided its guidance for Q4/24, expecting EPS to range between $1.13 and $1.15, with revenue forecasts between $1.125B and $1.13B. Analysts' current expectations align closely, predicting an EPS of $1.14 and revenues of $1.13 billion.

InvestingPro's EPS Forecast Trend shows a positive shift in analysts' EPS estimates for Zoom, with a notable increase of 23.5% from $0.93 to $1.15 per share over the last 12 months.

ZM

Source: Investing.com

The company has maintained a consistent track record of exceeding expectations for both EPS and revenue over the past four quarters.

ZM

Source: Investing.com

Our ProTips highlight Zoom's strengths, including a cash surplus over debt, expected net income growth, and substantial gross profit margins. Nonetheless, it cautions investors about the company's high earnings multiple.

ZM

Source: Investing.com

InvestingPro's Fair Value analysis indicates Zoom's fair value at $79.26 according to analyst targets, showcasing a 25% potential increase from its last closing price. Additionally, Investing models estimate Zoom's fair value to be $81.61, hinting at a potential rise of over 28%.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

ZM
Source: Investing.com

Workday

Workday (NASDAQ:WDAY) is scheduled to announce its Q4/24 financial results on Feb 26, after the market closes.

Current Street estimates stand at $1.47 for EPS and $1.92B for revenues.

Workday has a proven track record of surpassing both EPS and revenue predictions over the past six quarters.

WDAY

Source: Investing.com

Out Investing Models estimate Workday’s fair value at $277.57, suggesting a 9% downside from its current price. Analysts' average price target of $300.22 also suggests the stock might be overvalued.

WDAY

Source: Investing.com

***

Be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading. As with any investment, it's crucial to research extensively before making any decisions.

InvestingPro empowers investors to make informed decisions by providing a comprehensive analysis of undervalued stocks with the potential for significant upside in the market.

Subscribe here for under $9/month and never miss a bull market again!

invest

*Readers of this article get an extra 10% off our annual and 2-year Pro plans with codes OAPRO1 and OAPRO2.

Subscribe here and never miss a bull market again!

Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remains with the investor.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.