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Below-the-expectations Q3 earnings for SAP

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Miguel A. Rodriguez
Miguel A. Rodriguez
26 October 2020
SAP shares crumbled after Q3 earnings figures

The German software group – SAP - shares plummeted 21% after lower-than-expected Q3 numbers. Following the announcement, SAP lost €25 billion of its market #cap, dropping to €100 billion. For SAP, this marks the most significant intraday drop since 1999.

For the #Q3 2020, SAP reported revenues of €6.54 billion, below the €6.89 expected by the market. At the same time, its operating profit came in 12% lower compared to last year’s figures of €2.07 billion.

According to the company, the #pandemic negatively impacted the demand for its services. The lockdowns will continue to affect the business relations and customer management software sectors through 2021. Also, SAP plans to put its heart a soul in cloud computing services. 

Now, SAP expects its revenues to come in at €27.2 billion, below the previously touted €28.5 billion. The operating profit has also been revised from the €8.7 billion expected to €8.1 billion. The profit is expected to reach a high of €8.5 billion.

Read more quarterly reports on CAPEX.com!

Sources: Bloomberg.com, cnbc.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.