The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SAP met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped.
Margins shrank across the board.
SAP reported revenue of $6.62 billion. The 22 analysts polled by S&P Capital IQ predicted revenue of $6.71 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $5.85 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.51. The 10 earnings estimates compiled by S&P Capital IQ anticipated $1.54 per share. GAAP EPS of $1.21 for Q4 were 7.6% lower than the prior-year quarter's $1.31 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 72.8%, 260 basis points worse than the prior-year quarter. Operating margin was 31.7%, 740 basis points worse than the prior-year quarter. Net margin was 22.0%, 460 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.13 billion. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $24.17 billion. The average EPS estimate is $4.56.
The stock has a four-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 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 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 $73.96.
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