The world's leading business software provider, SAP AG (NYSE: SAP), is scheduled to report its first quarter FY 2011 earnings on Thursday. SAP is a market leader in enterprise application software. SAP makes software programs that examine the productivity in specific parts of a company, such as customer relations, enterprise resource planning, accounting, human resources, and others.
For Q4 FY 2010 (International Financial Reporting Standards – IFRS)
- IFRS software revenue was €1.51 billion (2009: €1.12 billion), an increase of 35 percent (25 percent at constant currencies).
- IFRS software and software-related service revenue was €3.27 billion (2009: €2.57 billion), an increase of 28 percent.
- IFRS total revenue was €4.06 billion (2009: €3.19 billion), an increase of 27 percent.
- Operating profit for the quarter was €543 million on IFRS basis, a decrease of 47 percent, compared with operating profit of €1.02 billion in the fourth quarter FY 2009.
- EPS for the quarter was €0.37 per share, down 35 percent, from €0.57 per share in the fourth quarter FY 2009.
For FY 2010
- IFRS software revenue was €3.27 billion (2009: €2.61 billion), an increase of 25 percent (16 percent at constant currencies)
- IFRS software and software-related service revenue was €9.79 billion (2009: €8.20 billion), an increase of 19 percent.
- IFRS total revenue was €12.46 billion (2009: €10.67 billion), an increase of 17 percent.
- IFRS operating profit was €2.59 billion (2009: €2.59 billion).
- EPS increased 4 percent to $1.53 per share, from $1.47 per share in FY 2009.
SAP provided the following outlook for the full year 2011
- The company expects full-year 2011 non-IFRS software and software-related service revenue to increase in a range of 10 percent – 14 percent at constant currencies (2010: €9.87 billion).
- The company expects full-year 2011 non-IFRS operating profit to be in a range of €4.45 billion – €4.65 billion at constant currencies.
- For the full-year 2011, the company projects an IFRS effective tax rate of 27.0 percent – 28.0 percent (2010: 22.3 percent) and a Non-IFRS effective tax rate of 27.5 percent - 28.5 percent.
For the first quarter, analysts' EPS estimates range from a low of $0.41 to a high of $0.52 per share, compared with a consensus estimate of $0.47 per share or $0.38 per share in the year ago quarter. For this quarter, analysts' revenue estimates range from a low of $2.69 billion to a high of $3.26 billion, compared with a consensus estimate of $3.01 billion or $2.56 billion in the same quarter a year ago. For the quarter ended March, 2011, the consensus EPS forecast has remained unchanged for the last 90 days.
In the last 52 weeks, the company's shares have been trading in the range of $40.95 and $67.07. The last trading price of the stock was $66.97 on April 25.
