William Blair’s Laura Lederman today issued her preview of Salesforce.com‘s (CRM) fiscal Q4 results, expected to be announced a week from Thursday, February 28th.
Lederman, who has an Outperform rating on shares of Salesforce, writes that her “channel checks” and also discussions with users, partners and sales reps suggest “demand environment remains strong and that very large deals are in the pipeline.”
She models 18% billings growth, year over year, “at least” in the quarter, but after adjusting for the year-earlier shift to annual billings, and a “large multi-year invoice,” billings growth should be “closer to 32%.”
She is modeling $829.9 million and adjusted EPS of 40 cents, versus the Street consensus for $831 million and 40 cents.
Most of the U.S. was probably “solid,” aside from the Midwest region, she thinks, with some possible disruption on the East Coast from Hurricane Sandy. New products such as the “market cloud” are “gaining traction.”
Spending among “middle-market” customers, meaning medium-sized businesses, was “strong,” and she gives some pointers to large deals she’s been expecting:
To our understanding, the company has been working on additional tranches with both State Farm and Hewlett-Packard (HPQ). Similarly, we have heard of a large deal with ING (ING) that may have closed (a deal we believe to be sub-$100 million).
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