Salesforce.com (CRM) Shares Tumbled Over This

Cloud software maker Salesforce.com saw a 7.7% drop in extended trading after forecasting that Q3 revenue was below estimates.

Salesforce said it expected an adjusted profit of 20-21 cents per share and revenue of $2.11 billion-$2.12 billion for the third quarter, while analysts on average were expecting an adjusted profit of 24 cents per share on revenue of $2.13 billion, according to Thomson Reuters I/B/E/S.

Keith Block, chief operating officer and president of the company, stated, “We had some softness in parts of the U.S. and look, at the end of the day what I would boil this down to is just a bit of blocking and tackling and we’ve taken a look at it and made the adjustments.”

The company reported net income of $229.6 million, or 33 cents per share, in Q2 ended July 31. This was compared with a loss of $852,000, or nil cents per share, a year earlier. Total revenue rose 25 percent to $2.04 billion.

Excluding items, Salesforce earned 24 cents per share. Analysts had expected earnings of 22 cents per share on revenue of $2.02 billion.

Disclaimer: We have no position in salesforce.com, Inc. (NYSE: CRM) and have not been compensated for this article.