Salesforce Inc. produced better adjusted earnings than expected in the fourth quarter and executives projected big profit gains this year in a Wednesday report, sending shares more than 12% higher amid activist-investor pressure.
Analysts on average expected adjusted earnings of $1.36 a share — the middle of the forecast range provided by Salesforce executives — on sales of $7.99 billion, according to FactSet. Salesforce shares topped $190 in after-hours trading immediately following the release of the results, after closing with a 2.3% increase at $167.34.
In the fiscal year that just ended, adjusted earnings returned to growth, Salesforce reported Wednesday. While GAAP earnings fell to $208 million from $1.44 billion, adjusted earnings rose to $5.24 a share from $4.78 a share the previous year. Revenue increased 18.3% to $31.35 billion for the entire year.