SAP SE SAP recently announced the next generation of its SAP Data Warehouse Cloud solution — SAP Datasphere. The solution is designed to aid data professionals to deliver quick access to vital business data across the organization's data landscape without compromising on business context and logic, added SAP.
Built on SAP Business Technology Platform, SAP Datasphere boasts a combined experience for data integration, data cataloging, data warehousing, semantic modeling, data federation and data virtualization. It also features robust enterprise database safety functions including security, encryption and governance.
Existing customers of SAP Data Warehouse Cloud are not required to perform any extra step or migrate to utilize the SAP Datasphere solution.
SAP also has established partnerships with some of the AI and data management companies, including Collibra NV, Confluent Inc, Databricks Inc and DataRobot Inc. The purpose of these collaborations is to boost the functionality of SAP Datasphere to aid business organizations to create a unified data architecture that securely integrates SAP software data as well as non-SAP data. By combining both SAP and third-party data, businesses will be able to unlock newer insights and drive business outcomes, added SAP.
Headquartered in Walldorf, Germany, SAP is one of the largest independent software vendors in the world and a leading enterprise resource planning software provider.
SAP SE Price and Consensus
SAP SE price-consensus-chart | SAP SE Quote
SAP’s performance is being driven by continued strength in its cloud business (especially the new Rise with SAP solution) across all regions as well as momentum in SAP’s business technology platform particularly the S/4HANA solutions. In the last reported quarter, SAP’s total revenues, on a non-IFRS basis, was €8.436 billion, up 6% year over year (up 1% at constant currency or cc).
The company’s restructuring plan is expected to better align its operating models and go-to-market approach with its accelerated cloud transformation. Frequent product launches like SAP Build and strategic collaborations bode well.
Given the continued business momentum, the company provided strong outlook for 2023. SAP anticipates cloud revenues in the range of €15.3-€15.7 billion, suggesting an increase of 22-25% at cc for 2023.
Cloud and software revenues are now expected to be between €28.2 billion and €28.7 billion, implying a 6-8% rise at cc.
The company continues to expect non-IFRS operating profit in the range of €8.8-€9.1 billion, indicating a rise of 10-13% at cc. Free cash flow is expected to be nearly €5 billion.
SAP currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Some other top-ranked stocks in the broader technology space are Arista Networks ANET, Perion Network PERI and Pegasystems PEGA, each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings is pegged at $5.79 per share, rising 11.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 23% in the past year.
The Zacks Consensus Estimate for Perion’s 2023 earnings is pegged at $2.69 per share, rising 16% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
Perion’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 31.7%. Shares of PERI have increased 66% in the past year.
The Zacks Consensus Estimate for Pegasystem’s 2023 earnings is pegged at $1.31 per share, rising 96% in the past 60 days.
Pegasystem’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average surprise being 11.2%. Shares of PEGA have declined 40.8% in the past year
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