Shares of SAP (NYSE:SAP) stock are getting crushed on Monday morning after the company reported earnings for third quarter of fiscal year 2020 on Sunday. The software company reported total revenues of 6.54 billion euros and earnings per share of 1.32 euros.
Here are some other important figures from the SAP stock earnings report:
- Per-share earnings are 26% better than 1.04 euros in the third quarter of FY2019.
- Revenue was down 4% from 6.79 billion euros last year.
- Cloud revenue jumped 11% year-over-year from 1.79 billion euros to 1.98 billion euros.
- Operating income of 1.47 billion euros is a 12% drop from 1.68 billion euros during the same time last year.
Christian Klein, CEO of SAP, had this to say about the company’s earnings:
“COVID-19 has created an inflection point for our customers. The move to the cloud combined with a true business transformation has become a must for enterprises, to gain resiliency and position them to emerge stronger out of the crisis. Together with our customers and partners we will co-innovate and reinvent how businesses run in a digital world. SAP will accelerate growth in the cloud to more than €22 billion in 2025 and expand the share of more predictable revenue to approximately 85%.”
As for the outlook for FY2021, SAP stated that the novel coronavirus pandemic will negatively effect business. In fact, it “is expected to impact the demand environment, particularly in hard hit industries, through at least the first half of 2021.” In turn, the company decreased its revenue outlook for total revenue, operating profit and select business segments.
SAP stock was down nearly 23% as of Monday afternoon.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick Clarkson is a web editor at InvestorPlace.