SAP Shares Rise on 1Q Results, Improved Profit Outlook
April 24 2019 - 5:26AM
Dow Jones News
By Patrick Costello
SAP (SAP.XE) shares rose sharply Wednesday on the back of
better-than-expected first-quarter results and an improved
profitability outlook.
The German software company posted a net profit of 1.08 billion
euros ($1.21 billion) on a non-IFRS basis in the first quarter, up
25% from the prior year. On an IFRS basis, the company generated a
net loss of EUR108 million due to restructuring costs, SAP
said.
Operating profit rose 19% to EUR1.47 billion, the company
said.
SAP also raised its non-IFRS operating profit target for 2019 to
between EUR7.85 billion and EUR8.05 billion, up from an earlier
target between EUR7.7 billion and EUR8 billion.
For 2020, SAP said it now targets a non-IFRS operating profit
between EUR8.8 billion and EUR9.1 billion, up from between EUR8.5
billion and EUR9 billion. Gross cloud margins should amount to 75%
on a non-IFRS basis by 2023, it said.
At 0852 GMT, shares of SAP were up 7% at EUR108.96. The share is
up 25% on year.
Analysts at Warburg said SAP's results "topped expectation" at
the non-IFRS level, even as the corresponding IFRS figures were
negatively hit with restructuring costs.
DZ Bank said it reiterated its buy rating and EUR119.2 price
target for SAP in light of its "solid" first-quarter and revised
outlook through 2023.
Write to Patrick Costello at patrick.costello@dowjones.com.
(END) Dow Jones Newswires
April 24, 2019 05:11 ET (09:11 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
SAP (NYSE:SAP)
Historical Stock Chart
From Mar 2024 to Apr 2024
SAP (NYSE:SAP)
Historical Stock Chart
From Apr 2023 to Apr 2024