SAP shares with limited reaction to strong quarterly results 💡

One of Europe's most important technology companies, SAP (SAP.DE) today released its Q4 and fiscal 2024 results, which confirmed that the company's business conditions continue to do well. SAP met and even exceeded all the parameters of its FY2024 financial forecast, thereby posting a 32% increase in its current order backlog in the Cloud sector.

• Revenues of 9,377 million euros vs. 9,143 million euros expected
• Cloud revenues €4.71 billion vs. expected €4.68 billion
• Earnings per share €1.37 vs. expected €1.35 
• SAP meets or exceeds all parameters of FY2024 financial forecast
• Current order backlog for cloud solutions of €18.1 billion, up 32% and 29% at constant exchange rates.
• Total cloud order backlog of €63.3 billion, up 43% and 40% at constant exchange rates.
• Cloud services revenue increased 25% and 26% at constant exchange rates in fiscal 2024
• Total revenues up 10% and up 10% at constant currencies in fiscal 2024
• Outlook for 2025 sees cloud revenue growth accelerating
• Company raises FY25 operating profit outlook by €10.3-10.6 billion (previously: €10.2 billion)

However, the company's shares erased almost all of the post-report rally, as the very strong results were assumed by the market, and the shares themselves have already gained nearly 11% since the beginning of the year. This does not change the fact that the fundamentals remain good, and the technical trend has not been broken (the upward-facing exponential 50-day, 100-day and 200-day moving averages). 

Source: xStation