SAP to Announce Q1 Earnings: Here's What You Should Know
SAP SE SAP is scheduled to post results for the first quarter of 2025 on April 22.The Zacks Consensus Estimate for first-quarter 2025 earnings has moved south 1 cent in the past 60 days and is pegged at $1.38 per share. The consensus mark implies a 56.8% increase from the year-ago reported actuals. The Zacks Consensus Estimate for first-quarter 2025 revenues is currently pegged at $9.68 billion, indicating a 10.87% uptick from the year-ago figure.SAP's earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed in the other one, delivering an average beat of 6.38%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
SAP's performance is expected to have benefited from steady momentum in its cloud business. Rapid adoption of Rise with SAP solution has been one of the major drivers of cloud business, along with the Cloud ERP Suite, which has contributed significantly to the overall cloud revenue growth. The 33% rise in Cloud ERP Suite revenues for 2024 was a result of SAP's focus on providing advanced, scalable solutions for enterprise resource planning in the cloud.Momentum in other cloud offerings like Grow with SAP and SAP Datasphere, as well as strategic acquisitions and collaborations, bodes well for its cloud business.SAP has been focusing on expanding its reach into the mid-market with a stronger emphasis on partner ecosystems. By empowering partners to target mid-market businesses, SAP has been working to tap into a highly profitable sales channel that has previously been underutilized.The company has also been focusing on integrating AI across its product suite. It expects business AI to play a key role in driving cloud ERP suite revenues. SAP's cloud-focused strategy delivered strong results, with half of fourth-quarter cloud order entries incorporating AI-use cases. This highlights its growing focus on data and Business AI, which is poised to play a pivotal role in driving revenue growth through 2027.
SAP SE price-eps-surprise | SAP SE Quote
On the last earnings call, management highlighted that it has incorporated more than 1,300 skills into AI co-pilot, which can now automate 80% of the most-used activities by users. In go-to-market, AI-assisted contract validation has cut SAP's average contract booking time by 75%. In corporate functions, AI-powered quote-to-cash automation has boosted productivity tenfold.However, the company's performance has been affected by continued softness in the Software license and support business segment, coupled with global macroeconomic weakness and geopolitical instability. Also, increasing research & development costs and stiff competition in the cloud space are concerns.
Our proven model does not predict an earnings beat for SAP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.SAP has an Earnings ESP of -0.49% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.Check Point Software Technologies Ltd. CHKP currently has an Earnings ESP of +0.57% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here. Check Point Software is scheduled to report quarterly earnings on April 23. The Zacks Consensus Estimate for CHKP's to-be-reported quarter's earnings and revenues is pegged at $2.19 per share and $636.4 million, respectively. Shares of CHKP have gained 50.3% in the past year.Woodward, Inc. WWD has an Earnings ESP of +3.95% and a Zacks Rank #2 at present. WWD is scheduled to report quarterly figures on April 28. The Zacks Consensus Estimate for Woodward's to-be-reported quarter's earnings and revenues is pegged at $1.44 per share and $829.3 million, respectively. Shares of WWD have gained 15.5% in the past year.SLM Corporation SLM has an Earnings ESP of +0.51% and a Zacks Rank #3 at present. SLM is scheduled to report quarterly figures on April 24. The Zacks Consensus Estimate for SLM's to-be-reported quarter's earnings and revenues is pegged at $1.18 per share and $359.7 million, respectively. Shares of SLM have risen 26.4% in the past year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SLM Corporation (SLM) : Free Stock Analysis Report
Check Point Software Technologies Ltd. (CHKP) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
Woodward, Inc. (WWD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TechCrunch
36 minutes ago
- TechCrunch
Suite AI: how SAP is bringing AI to the enterprise
As the adoption of AI increases, hear how SAP is expanding its AI capabilities across the business suite. By catching up with this TechCrunch Sessions: AI panel, you can see how to leverage upcoming innovations to boost efficiency, streamline processes, and drive greater engagement across your business. Plus, you'll get the opportunity to learn about SAP's AI agent Joule, embedded AI capabilities, and custom AI development. And you can check out the rest of our Sessions: AI programming right here.
Yahoo
38 minutes ago
- Yahoo
LGI Homes Unveils Lake Gallagher Estates Community in Dover, FL
LGI Homes LGIH announced the opening of Lake Gallagher Estates, a new community in Dover, FL. This community features an exclusive selection of 26 spacious, upgraded homes in Hillsborough County. Every home at Lake Gallagher Estates is situated on an expansive lot, with each lot covering at least three-fourths of an acre, thereby offering abundant space for outdoor living and activities. The majority of the homesites are aligned along the private community lake. Located conveniently near FL-574, residents will benefit from easy access to numerous shopping centers, a wide range of dining options, and top-rated schools, rendering it a perfect option for families desiring both privacy and daily accessibility. Dover District Park, which is just half a mile away, offers a pleasant outdoor space for families, featuring a lake, playground, picnic spots, walking paths, and athletic facilities. All homes at Lake Gallagher Estates feature LGI Homes' CompleteHome Plus package, a meticulously curated collection of high-end finishes and upgrades. LGIH's opening of Lake Gallagher Estates community highlights its commitment to addressing housing demands in Florida. The amenities provided at this community are likely to appeal buyers and encourage them to purchase homes. This Woodlands, TX-based company is a pioneer in the homebuilding industry, engaged in the design, construction and sale of new homes across 36 markets in 21 states through an innovative and systematic approach. In the past month, shares of this Zacks Rank #4 (Sell) company have declined 18% compared to the industry's fall of 3.4%. Image Source: Zacks Investment Research A better-ranked stock from the broader real estate sector is Ferrovial SE FER. FER currently sports a Zacks Rank of #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Ferrovial's 2025 earnings per share is pegged at 99 cents, which indicates a year-over-year decrease of 35.7%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LGI Homes, Inc. (LGIH) : Free Stock Analysis Report Ferrovial SE (FER) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
an hour ago
- Yahoo
DD Adds Sterile Packaging Capacity at Costa Rica Manufacturing Plant
DuPont de Nemours, Inc. DD announced an expansion of its sterile packaging operations by adding manufacturing capabilities at its Heredia, Costa Rica, plant. Enabling sterile packaging production at this healthcare manufacturing facility will help serve the global medical device industry and increase its existing medical tubing operations. Expanding the facility by 16,000 square feet has also helped DD serve the Caribbean and the Americas customers better. The facility is running on a 24/7 production schedule to support customers' demand with its ISO certified technical, assembly and packaging standards. The new expansion has been installed with additional extrusion equipment and production lines. This expansion marks Costa Rica's first-ever production of sterile healthcare packaging. DD is the first in Costa Rica and the Caribbean to produce fluid management and sterile packaging offerings for the medical device industry. DD is offering full and comprehensive solutions supporting healthcare applications, such as extruded tubing and subassemblies, advanced catheter assembly, medical balloons, skin contact devices, smart wearables, additive manufacturing, laser processing, precision injection-molding, medical device fabrication, machining and sterile packaging enabled by Tyvek. DD stock has lost 13% over the past year compared with the industry's 24.7% decline. Image Source: Zacks Investment Research For the second quarter of 2025, the company projects net sales of approximately $3.2 billion, operating EBITDA of around $815 million and adjusted earnings per share of about $1.05. This outlook reflects a seasonal sequential increase in sales. However, the rise is more subdued than previously anticipated due to timing shifts from the second quarter into the first quarter within the Semiconductor Technologies business. DD currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Basic Materials space are Akzo Nobel N.V. AKZOY, Newmont Corporation NEM and Balchem Corporation BCPC. While AKZOY and NEM currently sport a Zacks Rank #1 (Strong Buy) each, BCPC carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Akzo Nobel's current-year earnings is pegged at $1.66 per share, implying an 18.6% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once. The Zacks Consensus Estimate for NEM's current-year earnings is pegged at $4.18 per share, indicating a 20.1% year-over-year earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 32.41%. NEM's shares have gained 29.6% in the past year. The Zacks Consensus Estimate for BCPC's 2025 earnings is pegged at $5.15 per share, indicating a rise of 31% from year-ago levels. The company's earnings beat the consensus estimate in two of the trailing four quarters while missing the rest. Its shares have gained 10.6% in the past year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DuPont de Nemours, Inc. (DD) : Free Stock Analysis Report Newmont Corporation (NEM) : Free Stock Analysis Report Akzo Nobel NV (AKZOY) : Free Stock Analysis Report Balchem Corporation (BCPC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
