Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SAP SE. We currently have 13 research reports from 1 professional analysts.
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In line with expectations but costs are out of control
21 Oct 16
The company reported third quarter results. Total revenues increased 7.8% to €5.38bn. Cloud subscription & support revenues grew 28.4% to €769m. We estimated an increase of 31.2% to €786m and the market around €787m. New cloud bookings (order entry) increased 24% to €265m. Software licence revenues grew 2% to €1.04bn (our estimate +3.5% to €1.04bn). Maintenance revenues increased surprisingly strong by 5.7% to €2.65bn (estimate: 2.2% to €2.56bn). EBIT, however, dropped by 9% to €1.1bn. We expected an EBIT increase of 10.5% to €1.3bn. Net income dropped 19% to €730m (estimate: +6.3% to €955m). Cloud subscription and support revenues grew 34% from €136m to €182m in the EMEA region, and were especially strong in Germany, France and the UK. In the Americas, cloud revenues increased 24% to €508m, and in Asia Pacific around 52% to €78m. In the third quarter, the company added 400 new SAP S/4 HANA customers (+40%). Around 4,100 customers are now using this cloud platform.
No read-through for SAP
01 Sep 16
Salesforce reported second quarter results ending in July. Revenues increased 25% to US$2.04bn. EBIT jumped 64.2% to US$32.5m and the EBIT margin improved from 1.2% to 1.6%. From an earnings perspective, the company is not really visible. Net income, however, jumped from a small loss to US$229.3m. Around US$205.3m was related to a tax benefit as a result of the release of a portion of the valuation allowance related to the acquisition of Demandware. Salesforce.com acquired Demandware for a total of US$2.6bn and was also bidding for Linkedin which was bought by Microsoft for a total of US$26.2bn. GAAP income turned from a loss of US$0.85m to a profit of US$229.6m. Non-GAAP related income increased 32.9% to US$170.4m or US$0.24 per share. This includes amortisation of purchased intangibles, share-based compensation and other unpleasant cost items. Business in the Americas contributed 73% to revenues, Europe 17% and Asia Pacific 10%. Management experienced some weaker demand at the end of the second quarter but still raised the full-year revenue guidance range to between US$8,275m and US$8,325m.
The world is not enough!
20 Jul 16
SAP reported a strong operating performance in Q2 16. Total revenues increased 5.4% to €5.2bn (our estimate: €5.3bn). Cloud revenues grew by 30.4% to €720m (our estimate: €722m). EBIT jumped 79.2% to €1.16bn which was also in line with our expectations. Our EBIT definition, however, differs from the company’s reported EBIT. We use IFRS numbers and include other operating expenses/income which is not part of the SAP calculation. Despite the strong cloud business, licence revenues grew by 6.2% to €1.04bn and maintenance revenues 2.6% to €2.6bn.
Times are changing
13 May 16
At the AGM, the shareholders approved the new compensation system for the executive board starting in 2016. The approval, however, was not so well explained as it should have been. Around 66.1% of the total capital or 812m shares/votes attended the AGM. Around 45.31% was against the new compensation system and 54.69% of the shareholders agreed. This is not a SAP-style approval. Nearly every topic on the agenda was approved by at least 95% of the attending shareholders or even more in the past. The good old days are over.
Licence growth below expectations
21 Apr 16
SAP reported final Q1 16 results. Revenues increased 5.1% to €4.72bn. The operating profit jumped 59% to €778m and the real EBIT margin increased from 10.9% to 16.5%. Total adjustments were reduced from €413m by €123m to €290m due to lower share-based payment expenses. In addition, the company faced additional non-operational expenses of €35m compared to €148m in Q1 15. These so-called non-operational expenses, mainly foreign currency exchange gains/losses, are excluded from SAP’s EBIT calculation. Total revenues in Germany increased 8%, in EMEA 5%, in the USA 10% but declined 7% in the rest of the Americas mainly in Brazil. Revenues in Asia Pacific remained stable, but increased 9% in Japan and declined 2% in other regions. According to management, business in China was the highlight with double-digit software revenue growth. Total cloud subscription and support revenues grew 35% to €677m; in EMEA 49%; 31% in the Americas and 27% in Asia Pacific. For SAP, the Americas are the largest cloud market with a total volume of €460m or 68% of total cloud revenues in Q1 16.
Cloud revenues up 33%, licence revenues down 12.4%!
11 Apr 16
The company reported preliminary Q1 16 results. Cloud subscriptions and support revenues increased 35.2% to €680m. Software support grew 4.3% to €2.56bn and licence revenues declined 12.4% to €610m. Real EBIT according to our definition grew 65.5% to €810m. The EBIT margin jumped from 10.9% to 17.1%. Net earnings per share grew 39% to €0.48 compared to €0.35 in Q1 15. According to management, business in Europe and Asia Pacific was solid. Business in Brazil suffered from economic uncertainties and business in North America experienced a slower start due to a strong fourth quarter.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Small-cap quantitative research - Momentum screen refresh + 10 focus stocks
12 Jan 17
We have refreshed our momentum style screen for the first time since inception on 26 July 2016. As before, the screen selects the 25 stocks exhibiting the most extreme momentum characteristics, according to our measurement method. From these we have selected 10 to focus on. Since inception the screen has underperformed both the main small-cap and micro-cap indices against a background of generally rising momentum. We have noted a subset of the basket, where decelerating momentum at the time of measurement appears correlated with significant share price falls since selection. We shall monitor this factor with the new screen, albeit there are only two such stocks showing this pattern, namely Lamprell (not rated) and Gear4music (not rated).
N+1 Singer - Morning Song 12-01-2017
12 Jan 17
As anticipated, the second half has again been stronger than H1 and results will be broadly in line with expectations. In line with this, the order book has continued to grow and is at record levels. This confirms that significant progress has been made in the Group’s shift towards its Technology Products division which, as targeted, contributed c.60% of group revenue in FY16. The small acquisition of Cable Power also gives a complementary boost to the product range. It is also worth noting the significant reduction in net debt, £1.0m ahead of our forecast. We remain supportive of the Group’s strategy and continue to see a bright future as this transition towards a design led technology solutions business continues. We look forward to more detail in March at the final results.
N+1 Singer - Best Ideas 2017 - Top picks
04 Jan 17
Today we publish our Best Ideas for 2017 - 12 stocks that we believe have excellent prospects in the current year together with a detailed discussion of what we see as the key sector and market themes for 2017. Our top picks are Cineworld, Elementis, Herald Investment Trust, Hill & Smith, IQE, MySale, Redde, ReNeuron, RhythmOne, SDL, Servelec and Severfield.
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher