Software SAP AG (SAP) on Thursday released preliminary fourth quarter revenue and margins results that beat expectations, sending its shares higher.
The Waldorf, Germany-based company said that revenue fell 9% from last year to 3.18 billion euros ($4.61 billion U.S.) during the quarter, which would beat the current Wall Street analysts estimate for 3.08 billion euros.
It also intimated that software margins fell four percentage points from the prior year. SAP is slated to deliver its full fourth quarter earnings report on Jan. 27.
SAP shares rose 80 cents U.S., or +1.6%, in premarket trading Thursday.
The Bottom Line
Experts have avoided shares of SAP since our early June 2008 coverage began, when the stock was trading at $53.55 U.S. The company has a .99% dividend yield, based on last night's closing stock price of $50.39 U.S. The stock has technical support in the $45-$48 U.S. price area.
If the shares can build momentum on this morning's news, overhead resistance around the $54-$56 U.S. price levels can be seen, but experts would remain on the sidelines for now.
SAP AG (SAP) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
