SAP (NYSE: SAP ) is expected to report Q2 earnings on July 18. 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 10.6% and EPS will grow 15.3%.
The average estimate for revenue is $5.47 billion. On the bottom line, the average EPS estimate is $0.98.
Last quarter, SAP booked revenue of $4.66 billion. GAAP reported sales were 3.3% higher than the prior-year quarter's $4.47 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.75. GAAP EPS of $0.56 for Q1 were 14% higher than the prior-year quarter's $0.49 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 69.3%, 190 basis points better than the prior-year quarter. Operating margin was 22.2%, much about the same as the prior-year quarter. Net margin was 14.4%, 110 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $23.13 billion. The average EPS estimate is $4.57.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 346 members out of 393 rating the stock outperform, and 47 members rating it underperform. Among 110 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give SAP a green thumbs-up, and 17 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 $79.03.
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