Earnings Preview For SAP

SAP SAP is set to give its latest quarterly earnings report on Monday, 2024-10-21. Here's what investors need to know before the announcement.

Analysts estimate that SAP will report an earnings per share (EPS) of $1.33.

Anticipation surrounds SAP's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

Last quarter the company missed EPS by $0.01, which was followed by a 7.13% increase in the share price the next day.

Here's a look at SAP's past performance and the resulting price change:

SAP Share Price Analysis

Shares of SAP were trading at $235.9 as of November 05. Over the last 52-week period, shares are up 65.6%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Perspectives on SAP

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on SAP.

With 6 analyst ratings, SAP has a consensus rating of Outperform. The average one-year price target is $263.83, indicating a potential 11.84% upside.

Comparing Ratings Among Industry Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Salesforce, Adobe and Intuit, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• For Salesforce, analysts project an Outperform trajectory, with an average 1-year price target of $311.14, indicating a potential 31.89% upside.
• Analysts currently favor an Outperform trajectory for Adobe, with an average 1-year price target of $627.77, suggesting a potential 166.12% upside.
• Intuit is maintaining an Outperform status according to analysts, with an average 1-year price target of $744.3, indicating a potential 215.52% upside.

Peers Comparative Analysis Summary

In the peer analysis summary, key metrics for Salesforce, Adobe and Intuit are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

SAP ranks first in revenue growth among its peers. It ranks second in gross profit and return on equity.

Unveiling the Story Behind SAP

Founded in 1972 by former IBM employees, SAP provides database technology and enterprise resource planning software to enterprises around the world. Across more than 180 countries, the company serves 440,000 customers, approximately 80% of which are small- to medium-size enterprises.

A Deep Dive into SAP's Financials

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: SAP's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 9.38%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: SAP's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 17.27%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): SAP's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.53%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): SAP's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.09%, the company showcases efficient use of assets and strong financial health.

Debt Management: SAP's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.26.

To track all earnings releases for SAP visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.