SAP: stock down as FCF forecast disappoints
(CercleFinance.com) - SAP's share price fell significantly in Frankfurt on Thursday morning, as the company's quarterly results were overshadowed by a generalised risk aversion towards tech stocks.
Two weeks after the publication of its preliminary accounts, the Walldorf-based group presented its final Q4 results this morning: note that they show record performance in the cloud.
SAP announced that revenues from its cloud activities increased by 28% over the past quarter to reach 2.61 billion euros, including 24% growth at constant exchange rates: SAP has succeeded in reaching the upper bound of its FY cloud revenue targets.
The German software specialist confirmed that it expects its cloud sales to grow by 23% to 26% at constant exchange rates this year, while operating profit stable or even down by 5%.
The only real disappointment is that its free cash flow (FCF) forecast - set at 4.5 billion euros for 2022 - is well below its performance for 2021 (5.01 billion euros).
Investors seemed to be nit picking in a way, concentrating on this point - the stock was down 6% on Thursday morning, a fall amplified by the correction movement affecting the entire European technology sector after the restrictive comments by the Fed the day before.
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