Salesforces trailblazing results ease doubts on Wall Street

Salesforce.com Inc. posted its biggest gain in five months as the software company eased shareholder jitters after first-quarter results and a strong revenue outlook topped Wall Street projections.Several analysts reiterated buy-equivalent ratings on the stock with Credit Suisse’s Brad Zelnick calling the results a “trailblazing start” to fiscal 2020. Derrick Wood, an analyst at Cowen, recommended being “aggressive buyers of shares” since concerns about billings and business momentum have now been largely put to rest.The shares rose as much as 4.8 per cent Wednesday, their biggest gain since Jan. 4. Why tech giant Salesforce is cozying up to Canada Apple, Salesforce team up to boost number of mobile business apps Microsoft tops $1 trillion valuation for first time as it predicts more cloud growth Here’s what analysts are saying:• SunTrust Robinson, Terry Tillman: “Salesforce remains a top large-cap core tech holding in our opinion.”“We are encouraged by the company’s ability to maintain revenue guidance despite expecting more than US$200 million in FX headwinds for FY20.”• Wedbush, Steve Koenig: Salesforce.com’s first-quarter revenue beat by “an impressive” US$55 million despite increasing foreign currency headwinds. “Billings, unearned revenue and cash flow metrics were also well ahead of expectations.”“The only middling metrics were the new remaining performance obligation (RPO) and current RPO disclosures, which were only in line with guidance on a constant-currency basis.”Koenig said he’s “noticed increasingly negative sentiment” on Salesforce.com, but solid results for the first quarter “should set the stage for more positive price action from this SaaS bellwether as it beats and raises expectations throughout this year.”• Piper Jaffray, Alex Zukin: “Salesforce posted a strong quarter, with beats across major metrics including billings, revenue and (operating cash flow), while current RPO growth came in slightly below guidance due to FX headwinds.”“While we were surprised to see the weaker-than-expected RPO, we acknowledge the lack of historical data and newness of the metric, and would expect typical patterns of guided metric outperformance to resume going forward.”“We believe the stock remains attractive here given growth durability and favorable valuation.”• Cowen, Derrick Wood: “We would be more aggressive buyers of shares” with first-quarter concerns now largely put to rest.“Commentary around the demand (environment) and benefits from recent internal changes were encouraging.”“Investors should be reminded of the stability and durability” of Salesforce.com’s business model given the solid quarterly performance amid some internal changes.• Credit Suisse, Brad Zelnick: “First-quarter results were a “trailblazing start” to fiscal year 2020. “The outperformance was broad-based with notable strength in MuleSoft helping drive +24 per cent y/y constant currency, current RPO growth and 22 per cent organic constant currency billings growth.”“We continue to appreciate CRM’s positioning among various enterprise IT spending drivers.”• Bloomberg Intelligence: Anurag Rana, a senior technology analyst: “Salesforce.com’s 1Q results reiterate the company’s sound execution in the strong IT-spending environment. With 22 per cent / growth in its remaining performance obligations, or sales under contract, this stability should persist.” read more

Scrap metal trade to be reopened on a limited basis again

Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)RelatedGovt promises new legislation governing scrap metal exportation before year-endJune 18, 2018In “Business”Passage of scrap metal legislation likely next yearDecember 11, 2018In “latest news”Scrap metal trade to resume soonSeptember 27, 2018In “Business” Meanwhile, on another issue, Gaskin said that his Ministry is trying to determine the legitimacy of the newly formed Guyana Metal Dealers and General Exporters Association (GMD&GEA). The Association has since took the Government to task for the continued ban on the scrap metal trade.According to Gaskin however, Government recognizes the GMRA and they are still trying to understand who the new association really represents, and whether there is some conflict between the two groupings.“I am just trying to find out who the body is before I engage them because I don’t want to enter any discussion with a body that represents the industry and then find out that it is not so or represent the members. I really need to get a better sense of who they are and who their members are,” he added.Gaskin said that until such time that it is sorted out Government will continue to recognize the GMRA only. (Samuel Sukhnandan) Minister of Business Dominic GaskinAfter several months of delays, Government has decided to reopen the scrap metal trade next month on a limited basis to facilitate the clearance of some of the accumulated scrap metal across the country.While a date for the resumption of the trade has not been announced, Business Minister Dominic Gaskin told this media group on Monday that the date depends on several important factors.The Minister disclosed that a meeting was held with exporters and dealers a few weeks ago to introduce them to a new system that the Business Ministry is trying to implement.According to him, it is a software system that was specially designed to help the Ministry to monitor and regulate the trade once it resumes, creating a level playing field for all.“We’ve met with them, we’ve discussed it with them and we have arranged some training sessions for them to familiarize themselves with how the system will work and we are looking to do a little resumption starting next month. I can’t give you an exact date because it depends on a lot of things,” he explained.Gaskin said with the resumption of the trade, it will give the Ministry the opportunity to test the system to ensure that its working and also that it will help to clear some of the accumulated scrap metal that has been legitimately acquired from some of the exporters or dealers yards.Government had approved a restart of the scrap metal trade in Guyana during February 2017 after closing down the industry one year prior to that. The main reason for this, was to allow exporters, to ship out the existing stock for a limited period of three months, and ensure that there is no pile up of these materials. read more