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Summary
- Salesforce expects fiscal 2022 revenue to grow approximately 22 percent.
- HP said it currently does not have enough supply currently to keep up with the demand.
Salesforce (NYSE:CRM) stock jumped up to 7.8 percent on Friday’s trading, while HP Inc. (NYSE:HPQ) stock plunged as much as 9.4 percent.
The shares of Salesforce gained after the company lifted its outlook following strong double-digit growth in its fiscal first quarter topline and bottom.
Meanwhile, HP’s stock lost despite recording strong fiscal second quarter as the company expects supply constraints to continue through the end of the year, limiting its ability to fulfill the growing demand.
Salesforce (NYSE:CRM)
The California-based customer relationship management platform posted a 23 percent year-over-year growth in its first quarter-revenue to US$5.96 billion.
Subscription and support revenues rose 21 percent to US$5.54 billion while revenue in professional services and other segment jumped 47 percent to US$430 million.
Salesforce’s net income totaled US$469 million, or 50 cents per diluted share, up from US$99 million or 11 cents per share in the first quarter of fiscal 2021. Non-GAAP EPS increased to US$1.21 from 70 cents per share.
For the fiscal year 2022, the company now expects its revenue to grow approximately 22 percent to the range of US$25.9 billion to US$26 billion.
GAAP EPS is projected between 22 cents and 24 cents, while non-GAAP EPS is anticipated in the range of US$3.79 to US$3.81.
Salesforce CFO Amy Weaver said this “impressive start” to the year could fuel the company’s momentum in achieving its target of US$50 billion in revenue in fiscal year 2026.
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Source: Pixabay
HP Inc. (NYSE:HPQ)
HP’s net revenue in the fiscal second quarter came in at US$15.88 billion, up 27.3 percent from US$12.47 billion in the year-ago quarter following an “exceptional demand” for its products and services.
Personal Systems net revenue was US$10.6 billion, up 27% year over year while revenue from Printing rose 28 percent to US$5.3 billion.
GAAP EPS rose to 98 cents from 53 cents and non-GAAP EPS grew to 93 cents from 51 cents in the fiscal second quarter previous year. Net earnings increased to US$1.23 billion from US$764 million.
For fiscal 2021, HP now projects its GAAP EPS to be between US$3.24 and US$3.34. Non-GAAP EPS is expected in the range of US$3.40 to US$3.50.
While noting to the component shortages and supply chain challenges, CEO Enrique Lores said the company does not have enough supply currently to keep up with the demand. The supply constraints are expected to continue at least through the end of this year.
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