Shares of Salesforce (CRM) are moving up as the company reported fourth-quarter earnings, posting adjusted earnings per share of $2.29 versus an expected $2.27. The company did, however, forecast a weak sales growth of only an estimated 8.6% growth. In addition, the company announced it will eventually be issuing dividends to shareholders.
Macquarie Head of AI & Software Research Fred Havemeyer joins Yahoo Finance to discuss Salesforce’s earnings and what to expect from the company going forward.
Havemeyer speaks on the shareholder dividend news: “With the addition of a dividend here and the company also consistently returning capital to investors through buybacks, what we’re seeing is that we believe Salesforce here is really showing their dedication to deploying their cash flows in ways that are rewarding investors and their confidence in Salesforce. And so, where the company is focusing again on profitability and cash flows, and growing those cash flows nicely, north of 20% year-over-year in 2025, fiscal ’25, they see this as an opportunity to return more cash to shareholders.”
He continues: “It adds a very nice aspect to this story, that you can follow along for the growth, for the upside from AI, but you’re also being rewarded with both more margin, more profitability, more cash flows, and at the end of the day, more cash being returned to investors.”
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Editor’s note: This article was written by Nicholas Jacobino
