Earnings Alerts

SAP Earnings Analysis: 1Q Non-IFRS Revenue Meets Estimates Amidst Surges in Cloud Revenue

  • SAP’s first quarter Non-IFRS revenue was EU8.04 billion, which closely met the estimated EU8.03 billion.
  • The company’s Non-IFRS cloud and software revenue was EU6.96 billion, slightly surpassing the estimated EU6.93 billion.
  • SAP’s Non-IFRS cloud revenue was EU3.93 billion, slightly below the estimated EU3.94 billion.
  • The company experienced a 25% increase in Non-IFRS cloud revenue in constant currencies, which closely met the estimated growth rate of 24.5%.
  • SAP’s Non-IFRS operating profit was EU1.53 billion, falling short of the estimated EU1.7 billion.
  • The company saw a loss after tax of EU824 million, a stark contrast to an estimated profit of EU553.7 million.
  • SAP’s Non-IFRS earning per share (EPS) was EU0.81, below the estimate of EU0.89.
  • In terms of liquidity, SAP had a free cash flow of EU2.49 billion in the first quarter.
  • SAP is aiming to increase the number of women in executive roles with a target of reaching 25% by the end of 2027.
  • With regard to SAP’s stock rating, there are currently 18 buys, 8 holds, and 3 sells.

A look at SAP Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth3
Resilience4
Momentum5
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on Smartkarma Smart Scores for SAP, the company’s long-term outlook appears positive. With high scores in Momentum and Resilience, along with strong scores in Growth, SAP is positioned well for future success. The company’s resilience indicates its ability to withstand economic challenges, while its momentum suggests a strong upward trend in performance. Additionally, the growth score reflects potential for expansion and development within the industry. Although the Value and Dividend scores are not as high, SAP’s overall outlook remains promising.

SAP SE, a multinational software company known for developing business software and providing consulting and training services, shows a favorable outlook according to Smartkarma Smart Scores. With a focus on global markets, SAP’s strengths in momentum, growth, and resilience bode well for its long-term performance in the software industry. While there may be room for improvement in value and dividend factors, the company’s overall profile suggests a foundation for continued success and growth in the future.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

πŸ’‘ Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • βœ“ Unlimited Research Summaries
  • βœ“ Personalised Alerts
  • βœ“ Custom Watchlists
  • βœ“ Company Analytics and News
  • βœ“ Events & Webinars