Why Salesforce Stock Is Surging After Hours

Salesforce Inc CRM shares are trading higher in extended trading Wednesday after the company reported better-than-expected financial results and issued strong guidance. 

What Happened: Salesforce said fourth-quarter revenue increased 14% to $8.38 billion, which beat average analyst estimates of $7.99 billion, according to Benzinga Pro. The company reported quarterly earnings of $1.68 per share, which beat consensus estimates of $1.37 per share.

Operating margins came in at 4.3% on a GAAP basis and at 29.2% on an adjusted basis.

Salesforce said it returned $2.3 billion to shareholders in the quarter in the form of buybacks. The company also increased its buyback authorization to $20 billion.

"We closed FY23 with operating cash flow reaching $7.1 billion, up 19% year-over-year, the highest cash flow in our company's history, and one of the highest cash flows of any enterprise software company our size," said Marc Benioff, chair and CEO of Salesforce.

Amy Weaver, Salesforce's president and CFO, said: 

"Our relentless focus on execution and proactive management of the current environment allowed us to close out a strong quarter and set us up for a transformational fiscal year 24." 

Salesforce sees first-quarter revenue in a range of $8.16 billion to $8.18 billion versus estimates of $8.05 billion. The company expects first-quarter adjusted earnings of $1.60 to $1.61 per share versus estimates of $1.32 per share.

Salesforce expects full-year 2023 revenue to be between $34.5 billion and $34.7 billion versus estimates of $34.03 billion. The company sees full-year earnings in a range of $7.12 to $7.14 per share versus estimates of $5.84 per share. 

Salesforce will host a conference call to discuss these results at 5 p.m. ET.

See Also: Activist Investor Elliott Management Names Candidates For Salesforce Board: What You Need To Know

CRM Price Action: Salesforce has a 52-week high of $222.15 and a 52-week low of $126.34. 

The stock was up 13.83% after hours at $$190.50, according to Benzinga Pro.

Photo: courtesy of Salesforce.