SAP: market hails preliminary results

(CercleFinance.com) - Business software developer SAP last night reported preliminary results that were better than market expectations, boosting its share price in Frankfurt on Wednesday.


The business software specialist's total revenues rose by 5% in Q3 to 6.84 billion euros, better than expected, with analysts looking for 6.72 billion euros on average.

In the now strategic area of cloud computing, company sales climbed 20% to 2.39 billion euros over the quarter, again above the consensus of 2.35 billion euros.

Non-IFRS operating profit rose by 2% to 2.10 billion euros.

SAP has raised its annual revenues forecast from 9.3-9.5 billion euros to between 9.4 and 9.6 billion euros, buoyed by the acceleration of its "cloud" business.

While some analysts consider this increase in targets to be relatively modest, investors seemed to be convinced; SAP shares were the biggest risers on the DAX index on Wednesday, increasing 3.5%.

The German group's final results will be unveiled on 21 October.


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