Salesforce shares plummet 16% after first earnings miss since 2006 (Reuters/Reuters)
Salesforce (CRM)
Salesforce shares plunged more than 16% in premarket trading after the business software maker reported weaker-than-expected earnings and issued an earnings outlook that fell short of Wall Street expectations.
Salesforce now expects adjusted earnings per share of $2.34 to $2.36 on revenue of $9.2 billion to $9.25 billion for the current quarter. Analysts were expecting adjusted earnings per share of $2.40 on revenue of $9.37 billion.
Net income jumped to $1.53 billion, or $1.56 a share, from $19 million, or 20 cents a share, a year earlier.
The company's first-quarter adjusted earnings per share rose 44 percent to $2.44, beating expectations of $2.38.
Salesforce left its fiscal 2025 revenue guidance unchanged but lowered its operating margin forecast to 19.9% from about 20.4% previously.
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CEO Marc Benioff touted the company's recent focus on profits and the long-term potential of artificial intelligence as positives for the company.
“We are extremely well positioned to help companies realize the potential of AI over the next decade,” Benioff said in a statement.
Dr. Martens (DOCS.L)
Boot maker Dr. Martens is embarking on a major cost-cutting plan after being hit by a sudden drop in demand in the United States.
The company said its global pre-tax profits fell 43% to 97 million pounds for the 12 months to March due to a slowdown in its US wholesale business.
Sales fell 12% to £877m, compared to the forecast of £900m, while operating profits fell by a third to £122m, compared to the forecast of £125m.
The London-based company is aiming to cut costs by as much as £25 million over the next financial year, which it said would be achieved through improvements in “organisational efficiency and design, improved sourcing and streamlined operations”.
Dr. Martens has struggled in recent years to generate demand from consumers in the United States, its largest market.
Dr Martens CEO Kenny Wilson said: “We are clear that we need to return demand in the US to growth (from fiscal 2026 onwards) and we are implementing a detailed plan to achieve this, including refocusing and increasing our marketing investment in the US over the coming year.”
“We have also announced cost reduction plans which target savings of £20-25 million across the group. As we enter a year of transition, we are confident that the measures we are taking will position us well for the coming years.”
Wilson will step down before the end of the financial year and will be succeeded by Ije Nkorie, who currently serves as the company's chief brand officer.
The story continues
Saudi Aramco (2222.SR)
Saudi Arabia is preparing to formally launch a secondary offering of shares in oil giant Saudi Aramco as early as Sunday, which could raise more than $10 billion, The Wall Street Journal first reported.
The Saudi government and its sovereign wealth fund, the Public Investment Fund, own most of Aramco, with just 1.5 percent of the company listed on the Saudi stock exchange, the Tadawul, after its initial public offering in 2019.
The sale has attracted informal interest from Middle Eastern and European investors, with the total value exceeding $10 billion, according to a separate Bloomberg report.
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The IPO price is expected to be at a further discount of up to 10% from the trading price, but that level could change depending on investor demand.
The Aramco sale comes at a crucial time for Saudi Arabia, which has been pumping huge amounts of capital into its economy to fund a series of major projects and its ambitious Vision 2030 plans to shift GDP from oil and gas to artificial intelligence, sports and tourism.
The revenue will also help balance the kingdom's budget, which in May projected a 79 billion SAR ($21 billion) budget deficit this year, with further deficits in 2025 and 2026.
The Walt Disney Company (DIS)
Activist investor Nelson Peltz has sold his entire stake in Disney after losing a lengthy battle for a seat on the company's board of directors.
Peltz sold his entire stake in Disney at about $120 a share, making a profit of about $1 billion.
The development, first reported by CNBC, comes after Disney successfully fended off Peltz's demands to retain a seat on its board, formally ending a bitter proxy fight that has plagued the entertainment giant for months.
Mr. Peltz began criticizing Disney's management, led by Chief Executive Officer Robert A. Iger, early last year, pointing to the company's streaming strategy, its struggling stock price and its succession plans.
The billionaire head of hedge fund Trian Fund Management controls about $3.5 billion in Disney stock, most of which is owned by Ike Perlmutter, the former chairman of Marvel Entertainment.
Disney shares are up about 12% since the beginning of the year but have fallen about 15% since defeating Peltz in the proxy fight.
WATCH: Salesforce shares fall on second-quarter profit outlook
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