02:40 PM EDT, 05/23/2024 (MT Newswires) -- Salesforce ( CRM ) fiscal Q1 results are expected to surpass already low expectations, Oppenheimer said in a note Thursday.

The company expects Q1 adjusted earnings per share of $2.37 to $2.39 on revenue of $9.12 billion to $9.17 billion.

Salesforce ( CRM ) is expected to report Q1 results on Wednesday, and Oppenheimer expects its revenue to be around $9.15 billion, up 11% year-over-year, with a pro forma EPS of $2.37.

"Our earnings preview research mosaic points to mixed business trends and negative [foreign exchange] headwinds in [Q1 of 2025] that foretells little changes to estimates and fundamentals," Oppenheimer said, adding that it expects durable margin improvement and EPS growth, supporting valuation multiples.

Expectations are low going into the first quarter, while the company's pricing strategies, platform business and Data Cloud are expected to remain, strong growth drivers, this year, the note said.

Salesforce ( CRM ) pulled out of the deal to acquire Informatica ( INFA ) in April after the companies failed to agree on transaction terms, according to multiple media reports.

The management has shown prudence in not overpaying for Informatica ( INFA ) but the attempt revealed a weak spot in the company's data management solutions which may need inorganic research and development to address, Oppenheimer said, adding that this raises concerns about innovation and prompts investor caution due to near-term M&A risks.

Oppenheimer maintained its outperform rating on Salesforce ( CRM ) with a price target of $325.

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