SAP (SAP, $102.99) beats Q1 revenue estimates, misses earnings expectations
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.
SAP sees its Stochastic Oscillator ascends from oversold territory
On May 31, 2023, the Stochastic Oscillator for SAP moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 57 instances where the indicator left the oversold zone. In of the 57 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SAP advanced for three days, in of 310 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 Aroon Indicator entered an Uptrend today. In of 262 cases where SAP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for SAP moved out of overbought territory on May 01, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 32 similar instances where the indicator moved out of overbought territory. In of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on May 22, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on SAP as a result. In of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SAP turned negative on May 05, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued 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 (3.532) is normal, around the industry mean (31.526). P/E Ratio (85.470) is within average values for comparable stocks, (167.679). Projected Growth (PEG Ratio) (1.671) is also within normal values, averaging (4.163). Dividend Yield (0.017) settles around the average of (0.040) among similar stocks. P/S Ratio (4.535) is also within normal values, averaging (75.236).
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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of e-business software solutions
Industry PackagedSoftware
SAP and
Correlation & Price change
A.I.dvisor indicates that over the last year, SAP has been loosely correlated with ANSS. These tickers have moved in lockstep 65% of the time. This A.I.-generated data suggests there is some statistical probability that if SAP jumps, then ANSS could also see price increases.
| Ticker / NAME | Correlation To SAP | 1D Price Change % | ||
|---|---|---|---|---|
| SAP | 100% | +0.15% | ||
| ANSS - SAP | 65% Loosely correlated | -1.69% | ||
| SSNC - SAP | 65% Loosely correlated | +0.40% | ||
| ADSK - SAP | 62% Loosely correlated | +2.23% | ||
| EEFT - SAP | 61% Loosely correlated | -0.69% | ||
| ENV - SAP | 60% Loosely correlated | +0.38% | ||
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