Shares of software provider SAP SE (NYSE:SAP) (DE:SAP) were little changed in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2024. Earnings per share came in at €0.81, which missed analysts’ consensus estimate of €0.98 per share. Furthermore, sales increased by 8.1% year-over-year, with revenue hitting €8.04 billion.
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Looking forward, management now expects revenue for FY 2024 to be in the range of €29 billion to €29.5 billion on a constant-currency basis. This would exceed 2023’s result of €26.92 billion. However, it also anticipates €3.5 billion in free cash flow, which would be lower than the €5.09 billion it saw in the prior year.
Is SAP Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on SAP stock based on five Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 36% rally in its share price over the past year, the average SAP price target of $211.17 per share implies 18.51% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
