SAP (NYS: SAP) reported earnings on April 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), SAP met expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased.
Gross margin grew, operating margin dropped, and net margin was steady.
SAP chalked up revenue of $4.47 billion. The 23 analysts polled by S&P Capital IQ hoped for a top line of $4.50 billion on the same basis. GAAP reported sales were 4.1% higher than the prior-year quarter's $4.29 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.65. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.66 per share on the same basis. GAAP EPS of $0.49 for Q1 were 2.1% higher than the prior-year quarter's $0.48 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 65.3%, 70 basis points better than the prior-year quarter. Operating margin was 18.6%, 120 basis points worse than the prior-year quarter. Net margin was 13.3%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $4.97 billion. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $20.97 billion. The average EPS estimate is $4.01.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 332 members out of 377 rating the stock outperform, and 45 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give SAP a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SAP is hold, with an average price target of $66.00.
New technology paradigms and mobile devices are driving the next wave of computing. Many older companies won't survive the change, while fortunes will be made by the first movers in the field. Where does SAP fit in? What's the fortune-making change? Check out our free report: "The Two Words Bill Gates Doesn't Want You to Hear..." Click here for instant access to this free report.
Add SAP to My Watchlist.
At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.