SAP (NYSE: SAP ) is expected to report Q1 earnings on Jan. 23. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict SAP's revenues will expand 15.3% and EPS will expand 16.9%.
The average estimate for revenue is $5.15 billion. On the bottom line, the average EPS estimate is $0.76.
Last quarter, SAP booked revenue of $6.62 billion. GAAP reported sales were 11% higher than the prior-year quarter's $4.58 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, EPS came in at $0.67. GAAP EPS of $0.67 for Q4 were 52% lower than the prior-year quarter's $1.41 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 70.7%, 80 basis points worse than the prior-year quarter. Operating margin was 27.5%, 610 basis points worse than the prior-year quarter. Net margin was 15.6%, 2,110 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $24.26 billion. The average EPS estimate is $4.57.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 340 members out of 390 rating the stock outperform, and 50 members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give SAP a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SAP is hold, with an average price target of $64.18.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not SAP makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add SAP to My Watchlist.