German company SAP posted a first-quarter revenue that surpassed analysts’ expectations. Earnings, however, missed estimates.
The software company’s revenue rose + 11% from the year-ago quarter to 7.08 billion euros at constant currency, topping analysts’ expectations of 6.87 billion euros, according to a Refinitiv poll.
Revenue from the cloud and software segment increased 12% to 6.06 billion euros.
Current cloud backlog, which gauges incoming business, climbed +28% at 9.73 billion euros. The war in Ukraine subtracted the backlog growth at constant currency rates by 0.8 percentage points.
The company’s adjusted earnings came in at €1.00, falling short of Wall Street expectations of €1.16.
SAP is anticipating a negative revenue impact of around -€300 million in 2022 from a lack of new contracts and the ending of existing business. It projects operating profit to likely fall by -€350 million in turn, with the decrease in profit steeper than the fall in sales due to winding down operations and a bad debt expense.
The 10-day moving average for SAP crossed bearishly below the 50-day moving average on April 16, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 60 cases where SAP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
SAP moved below its 50-day moving average on April 25, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SAP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for SAP entered a downward trend on April 30, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where SAP's RSI Indicator exited the oversold zone, of 30 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 26, 2024. You may want to consider a long position or call options on SAP as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for SAP just turned positive on May 03, 2024. Looking at past instances where SAP's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SAP advanced for three days, in of 313 cases, the price rose further within the following month. The odds of a continued upward trend are .
SAP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SAP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.909) is normal, around the industry mean (29.992). P/E Ratio (58.937) is within average values for comparable stocks, (155.575). Projected Growth (PEG Ratio) (3.964) is also within normal values, averaging (2.725). Dividend Yield (0.011) settles around the average of (0.081) among similar stocks. P/S Ratio (6.863) is also within normal values, averaging (55.531).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of e-business software solutions
Industry PackagedSoftware