SAP AG Earnings: Here’s Why Shares are Down Now

SAP AG (NYSE:SAP) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.47%.

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SAP AG Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.58 in the quarter versus EPS of $ in the year-earlier quarter.

Revenue: Decreased 19.45% to $3.6 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: SAP AG reported adjusted EPS income of $0.58 per share. By that measure, the company beat the mean analyst estimate of $0. It beat the average revenue estimate of $0.

Quoting Management: “Our industry is at a fundamental transformation point, driven by the convergence of mobile, cloud and big data. SAP’s 25% growth shows that we are not only leading this change but also gaining significant worldwide market share,” said SAP Co-CEOs Bill McDermott and Jim Hagemann Snabe. “Customers continue to choose our innovations to help them run better, and SAP HANA is the next-generation platform for all companies to innovate their business, drive speed across the entire enterprise and reduce costs. SAP’s pipeline is strong, and we are confident that we will achieve our full-year outlook.”

Key Stats (on next page)…

Revenue decreased 48.51% from $6.99 billion in the previous quarter. EPS increased to $0.58 in the quarter versus EPS of $ in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0 and has not changed. For the current year, the average estimate is a loss of $0, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)