Stock

SAP shares jump as cloud strength drives beat and raise performance in Q3

Investing.com — SAP raised its full-year guidance Monday after fiscal third-quarter results beat analyst expectations on both the top and bottom lines, driven by jump in cloud revenue.

SAP raises its 2024 outlook adjusted operating profit to between €7.8 billion and €8.0B, up from prior guidance of €7.6B to €7.9B. The stronger guidance was supported by expectations for larger cloud and software revenue.

The company now sees cloud and software revenue in a range of €29.5B to €29.8B up 10% to 11% from a year earlier and up from a prior forecast range of €29.0B to €29.5B.

SAP SE ADR (NYSE:SAP) rose around 5% in premarket trading Tuesday. 

For the three months ended Sept. 30, SAP reported adjusted earnings of €1.23 per share on revenue of €8.47B, beating the consensus estimates of €1.06 per share and €8.63B, respectively. 

Cloud revenue jumped 25% to €4.35B in Q3 year on year.

“Given the strength of momentum, we expect the results to be well received, although cautionary macro comments and a reminder of tough 4Q comps will likely temper some of the enthusiasm,” Jefferies analysts said in a post-earnings note.

Meanwhile, analysts at JMP Securities raised their SAP price target after the report from $245 to $300.

The firm said it continues “to view SAP as an attractive opportunity for long-term capital appreciation,” citing its successful growth strategy, a very large total addressable market (TAM) that could reach $670 billion in 2025, progress in SAP Business AI, and “an ambition to continue accelerating the business through 2027.”

Yasin Ebrahim contributed to this report. 

 

This post appeared first on investing.com

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

More in:Stock