The SAP stock is bouncing up strongly today. It rose by 9.62 Euros or 7.4 percent to 139 Euros. A new all-time high! The stock has now clearly surpassed the last high from February of just under 130 Euros (shortly before the beginning of the big stock market crash). A very good signal for SAP and for the Dax. The reason for this is that the company has already published preliminary quarterly figures tonight in advance.
Figures from SAP impress
SAP is (simply put) a winner of the corona crisis, as is now becoming clear. The turnover is 6.74 billion Euros, which is 1 percent higher than in the previous year. In general, one rather expected a decline in sales. Earnings (earnings before interest and taxes adjusted for special effects) climbed eight percent to 1.96 billion Euros compared to the second quarter of 2019. The expectations were 1.8 billion Euros. In the second quarter, the operating margin increased by 6.5 percentage points year-on-year to 19.0% (IFRS) and by 1.8 percentage points year-on-year to 29.1% (non-IFRS) and by 1.6 percentage points to 28.9% (non-IFRS, constant currency). SAP’s cloud business was particularly impressive. Cloud revenue (IFRS) increased by 21%. Cloud revenue (non-IFRS) increased by 19%. SAP today confirms its outlook for 2020, which was published in its quarterly report for the first quarter of 2020 on April 21.
CEO commentary in full:
“I am very proud that our teams have successfully mastered the very difficult environment and achieved a better quarterly result than expected. It is clear that our customers are relying on SAP’s strategy for the smart company to become faster, more agile, and more resilient. Our applications support the core business processes of companies worldwide. As a result, our portfolio also plays a key role in helping our customers achieve the digital transformation they desire. As a result, our customers can emerge stronger from the crisis. In line with our strategy, we are continuing to invest in our growth drivers such as the industry-specific cloud.”
How did SAP react to the crisis?
Here is the company’s response to the crisis:
SAP is continuing to operate efficiently thanks to a strategy that enables predominantly virtual sales and remote implementations. To protect its profitability, SAP responded quickly to the corona crisis by hiring fewer new employees, reducing expenses that could be adjusted at short notice, and also taking advantage of cost-saving opportunities such as less business travel, lower building costs, and virtual events. Together with strong revenue growth, these rapid measures led to higher operating income and margins despite the difficult macroeconomic environment.