(RTTNews) - Shares of SAP SE (SAP) are falling more than 21 percent or $32.26 in Monday's morning trade at $117.42 after the German software major lowered its revenue forecast for fiscal 2020.
For fiscal 2020, SAP now expects non-IFRS total revenue to be 27.2 billion euros to 27.8 billion euros at constant currencies, compared to its prior outlook of 27.8 billion euros to 28.5 billion euros. The company expects the COVID-19 pandemic to impact the demand environment through at least the first half of 2021, pushing out the achievement of key metrics such as non-IFRS cloud revenue, total revenue, and operating profit, by 1 to 2 years.
SAP reported that its third-quarter profit after tax rose 31 percent to 1.65 billion euros from last year's 1.26 billion euros. Earnings per basic share rose 26 percent year over year to 1.32 euros on a IFRS basis and also increased 31 percent to 1.70 euros on a non-IFRS basis. Total revenue declined 4 percent from last year to 6.54 billion euros.
SAP has traded in a range of $90.90 to $169.30 in the past 52 weeks.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.