SAP was until recently the largest tech company in Europe, Now replaced by PROSUS but after a disappointing Q3 earnings it fell 20%+.
Total revenue fell 4% to €6.54 billion, cloud and software revenue fell 2% and operating profit fell 12%. However, Pure-cloud services grew 11%, to €1.98 billion.
SAP’s revenue was around €300 million under expectations, though per-share profit beat expectations.
“Over the next two years, we expect to see muted growth of revenue accompanied by a flat to slightly lower operating profit. After 2022 momentum will pick up considerably though. Initial headwinds of the accelerated cloud transition will start to turn into tailwinds for revenue and profit. That translates to accelerated revenue growth and double digit operating profit growth from 2023 onwards,” SAP CFO Luka Mucic said in a call with analysts.
Looking to scale in when price is in BUY ZONE (purple box), with Entry target of $100. Stop Loss $90. Exit target MINIMUM 2:1 RR , look at levels to find an exit.
This will probably be a longer term play due to the revised forecast targets being pushed back from 2023 to 2025
THIS IS NOT FINANCIAL ADVICE, JUST A RANDOM IDEA
Total revenue fell 4% to €6.54 billion, cloud and software revenue fell 2% and operating profit fell 12%. However, Pure-cloud services grew 11%, to €1.98 billion.
SAP’s revenue was around €300 million under expectations, though per-share profit beat expectations.
“Over the next two years, we expect to see muted growth of revenue accompanied by a flat to slightly lower operating profit. After 2022 momentum will pick up considerably though. Initial headwinds of the accelerated cloud transition will start to turn into tailwinds for revenue and profit. That translates to accelerated revenue growth and double digit operating profit growth from 2023 onwards,” SAP CFO Luka Mucic said in a call with analysts.
Looking to scale in when price is in BUY ZONE (purple box), with Entry target of $100. Stop Loss $90. Exit target MINIMUM 2:1 RR , look at levels to find an exit.
This will probably be a longer term play due to the revised forecast targets being pushed back from 2023 to 2025
THIS IS NOT FINANCIAL ADVICE, JUST A RANDOM IDEA