Shares of software giant SAP AG (SAP) are up up $1.37, or 2.4%, at $58.10, one of the few bright spots in a weak market, after the company this morning reported Q2 revenue and profit that topped analysts’ estimates.
Revenue in the three months ended in June rose 12%, year over year, to �3.92B, yielding EPS of 92 Euro cents.
Analysts on average had been modeling �3.3 billion and 86 cents.
In a note to clients this morning, Bernstein Research’s Mark Moerdler, who has a Buy rating on SAP shares and an $80 price target, writes that “the strong results were driven by solid resultsin new licenses, while support revenue and cloud appear to be slightly above expectations.”
Moerdler notes that Oracle (ORCL) “previously reported weak database revenue, which led us to be concerned about delayed project starts and weak apps revenue. But SAP’s strong software revenue suggestedotherwise.”
Moerdler also notes that there were encouraging details for SAP’s “HANA” in-memory database product:
There were alsosignificant deals for HANA across all regions. We believe this supports our thesis that HANA is a disruptive technology that could drive growth for SAP, plus liftthe core business.
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