SAP Lifts Outlook as Expanding Cloud Boosts Profit
January 24 2017 - 12:54AM
Dow Jones News
By Sarah Sloat and Christopher Alessi
FRANKFURT--Business software provider SAP SE (SAP) on Tuesday
said its net profit for the fourth quarter rose strongly and raised
its guidance for 2017 and 2020, driven by expansion in the cloud
and by customers adopting the latest generation of its business
software.
Net profit for the three months ended Dec. 31 was 1.51 billion
euros ($1.62 billion), up 18% from EUR1.28 billion in the same
period a year earlier. Total revenue rose 6% to EUR6.72 billion
from EUR6.34 billion.
SAP also provided a fourth-quarter net profit figure of EUR1.82
billion, which isn't recognized under international financial
reporting standards, beating analysts' forecasts. Analysts had
predicted a non-IFRS net profit of EUR1.67 billion, according to a
poll conducted by The Wall Street Journal.
The software company raised its revenue and operating profit
guidance for 2017 and 2020. SAP now expects non-IFRS operating
profit to be in a range of EUR6.8 billion to EUR7 billion in 2017,
raising the lower end of its previous estimate of EUR6.7 billion to
EUR7 billion. For 2020, that figure should reach between EUR8.5
billion to EUR9 billion, up from the EUR8 billion to EUR9 billion
previously predicted.
-Write to Sarah Sloat at sarah.sloat@wsj.com
(END) Dow Jones Newswires
January 24, 2017 01:39 ET (06:39 GMT)
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