Strong SAP sales, earnings defy tech gloom

SAP shares reversed losses and traded up 4.7% at 48.35 euros

Germany's SAP AG said second-quarter software revenues rose a currency-adjusted 19 percent, near the upper end of its target range, defying a weakening trend at its technology peers.

The world's largest maker of business software said on Thursday that software revenues, when measured by IFRS accounting standards, rose to 1.06 billion euros, based on preliminary results.

It had previously predicted a 15-20 percent increase at constant currencies.

Quarterly operating profit before special items rose 15 percent to 1.17 billion euros, above the Thomson Reuters I/B/E/S average analyst estimate of 1.11 billion euros.

SAP shares reversed losses and traded up 4.7 percent at 48.35 euros by 1236 GMT.

 

"The results are much better than the market had come to expect recently," one stock market trader said.

"Very sound set of figures, given the macroeconomic uncertainties and the poor results of some competitors," said DZ Bank analyst Oliver Finger.

There has been plenty of evidence of a weak second-quarter in the tech sector. U.S. software firms Qlik Technologies and Informatica Corp as well as Indian software services provider Infosys have issued estimates below market forecasts.

Last month, however, SAP's main peer Oracle reported stronger-than-expected quarterly profit.

SAP is expected to publish more detailed results and to provide a full-year outlook on July 24.