Overview of SAP
SAP (SAP), a Germany-based (EWG) software giant, provides various applications for enterprise management. The company’s SAP HANA platform is very well known. It combines database, data processing, and application platforms.
The stock returned 2.6% on Monday, January 11, 2016. It declared its 4Q15 results on the day. SAP also extended its collaboration with Accenture (ACN) for its S/4 HANA business application development.
SAP declared its fourth-quarter results
- SAP announced its fourth-quarter results for 2015 on January 11, 2016.
- Its operating profit fell by 3% to 1.7 billion euros for the period ended December 31, 2015, compared to 1.8 billion euros during the same period in 2014. However, the company’s 4Q15 revenue jumped by 16% to 6.4 billion euros.
- SAP reported a fourth-quarter operating profit of 2.3 billion euros based on a calculation that is not recognized under international financial reporting standards.
- The company proposed optimistic guidance for 2016 due to strong growth in the cloud computing business. It expects operating profits in the range of 6.4–6.7 billion euros for 2016.
SAP is currently trading at 72.42 euros. Its 52-week high is 75.75 euros, and its 52-week low is 53.91 euros. The stock returned 27% in 2015. Its price-to-earnings ratio is 28.07x, which is relatively cheaper than its competitor Microsoft (MSFT). Oracle (ORCL) has a price-to-earnings ratio of 16.68x.
The stock is currently trading 9% above its 100-day moving average and 1% above its 20-day moving average. The stock is trading at par with its 50-day moving average. Analysts’ estimates indicate an upside of 7% for SAP over the coming 12-month period from its current levels as of January 11, 2016.
In the next part of this series, we’ll look at the performance of Repsol on January 11, 2016.