SAP SE (ETR:SAPG) (NYSE:SAP), a global leader in enterprise application software, has filed its quarterly statement for the period ending September 30, 2024, with Deutsche Boerse (ETR:DB1Gn) AG. The report, filed today, includes non-International Financial Reporting Standards (non-IFRS) financial measures alongside the standard IFRS metrics.
The company emphasizes that these supplementary non-IFRS measures should be assessed in conjunction with IFRS financial performance indicators and not viewed as superior or as a replacement. SAP SE has provided additional explanations of these non-IFRS measures on its investor relations website.
The quarterly statement, dated October 21, 2024, has been incorporated by reference into this report and is included as Exhibit 99.1. It is important to note that the information presented herein is based solely on the press release statement and does not include any speculative content or subjective assessment.
In other recent news, SAP AG (NYSE:SAP) has seen a series of positive developments.
Financial research firm CFRA raised its price target on shares of SAP AG, citing the company's growth prospects. The company reported third-quarter earnings per share (EPS) at €1.23, surpassing estimates, and a 9% increase in sales, driven by a robust 25% increase in cloud growth. Moreover, SAP's predictable revenue now accounts for 86% of sales, indicating financial stability.
In addition to CFRA, TD Cowen and BMO Capital Markets also adjusted their price targets for SAP AG. TD Cowen maintained a Hold rating while increasing the price target from $234.00 to $240.00. BMO Capital Markets raised the price target from $248.00 to $265.00, maintaining an Outperform rating. Both firms acknowledged SAP's solid performance and growth prospects, especially in the cloud sector.
Oppenheimer maintained a Perform rating on SAP AG shares, noting the company's accelerated top-line growth and increased cloud revenue. The firm also acknowledged SAP's consistent generation of over €1 billion in free cash flow each quarter throughout 2024.
SAP AG reported a 27% increase in cloud revenue in the third quarter, reaching €4.35 billion ($4.71 billion). The company's operating profit saw a substantial 28% increase to €2.24 billion, surpassing market expectations.
SAP also recently acquired WalkMe, a move expected to enhance its business transformation offerings. These are among the recent developments that have shaped SAP's financial performance.
InvestingPro Insights
SAP's recent financial performance and market position reflect its strength in the enterprise software industry. According to InvestingPro data, SAP boasts a substantial market capitalization of $271.11 billion, underscoring its significant presence in the market. The company's revenue for the last twelve months as of Q3 2024 stood at $37.04 billion, with a notable revenue growth of 8.0% during this period.
InvestingPro Tips highlight SAP's consistent performance and market appeal. The company has maintained dividend payments for 33 consecutive years, demonstrating financial stability and commitment to shareholder returns. Additionally, SAP's stock has shown a high return over the last year, with a price total return of 77.33% as of the latest data.
These insights align with the company's forward-looking statements mentioned in the article, suggesting that SAP's current performance supports its positive outlook. For investors seeking a deeper understanding of SAP's financial health and market position, InvestingPro offers 16 additional tips, providing a comprehensive analysis to inform investment decisions.
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