Stock futures slide as Salesforce tumbles on revenue miss and soft guidance: Live updates

Salesforce Inc. is poised to chop 281 points off the Dow Jones Industrial Average at Thursday’s market open, based on its postmarket decline of almost $43 in after-hours trading Wednesday.

Salesforce is slumping after its second-quarter forecasts for revenue and earnings per share fell short of analysts’ consensus estimates, according to FactSet data.

Because the Dow is weighted by price, every dollar change in any component stock moves the average up or down by about 6.6 points. Meaning Salesforce’s $42.60 loss would equal a 281-point decline come Thursday morning.

— Scott Schnipper

Although earnings from Salesforce beat analyst estimates by 6 cents, first quarter revenues fell short of expectations. That’s sending shockwaves through Wall Street as it’s the tech giant first revenue miss since February 2006, using information from earnings data firm LSEG.

Compounding the disappointing top line results is weak second quarter revenue and earnings guidance. Shares of the blue chip stock are plunging 17% on the news. That move alone would push the Dow Industrials down 315 points if Salesforce stock’s current losses hold at Thursday’s market open.

— Robert Hum

Check out the companies making headlines in extended trading:

Salesforce — Shares plunged more than 14% after first-quarter revenue of $9.13 billion missed consensus estimates of $9.17 billion, according to LSEG. Adjusted earnings of $2.44 per share beat a consensus estimate of $2.38, but current-quarter guidance fell below estimates on both top and bottom lines. 

UiPath — The software company tanked 30% after saying its CEO Rob Enslin will resign, effective June 1. He will also be stepping down from the board of directors. Daniel Dines, former CEO of UiPath and current chief innovation officer, will return to the helm.

HP Inc. — The manufacturer of personal computers rose 3%. HP posted adjusted earnings of 82 cents per share on revenue of $12.8 billion in its fiscal second quarter, above analysts’ estimates of 81 cents a share and revenue of $12.6 billion, according to LSEG.

The full list can be found here.

— Hakyung Kim

U.S. stock futures opened negative Wednesday evening.

Futures tied to the Dow Jones Industrial Average declined 258 points, or 0.7%.

S&P 500 and Nasdaq-100 futures fell 0.2% each.

— Hakyung Kim