Here are highlights from Tuesday’s Analyst Blog:
Earnings Preview: SAP AG
SAP AG SAP July 27, 2011 79 cents $4.7 billion
First-Quarter 2011, Summary
SAP AG 46 cents 65 cents $4.12 billion $4.17 billion
Software revenue was €583 million, an increase of 26% year over year. Software and software-related service revenue was €2.33 billion, an increase of 20%.
Second-Quarter 2011 Zacks Consensus
79 cents 60 cents 67 cents to 83 cents
Zacks Agreement & Magnitude
Of the 20 analysts following the stock, one analyst revised his estimates upward while 2 analysts lowered their estimates in the last 30 days. However, the Zacks Consensus Estimate remained unchanged.
Positive Earnings Surprise History
With respect to earnings surprises, SAP AG has topped the Zacks Consensus Estimate twice in the last four quarters in the range of approximately 3.5% to 6.0%. The average remained at approximately 1.6%. This suggests that SAP AG has beaten the Zacks Consensus Estimate by an average of 1.6% in the trailing four quarters.
SAP AG is the leader in the worldwide enterprise applications market with the largest market share. Its primary focus is on high-margin software license sales. The company delivered a good first quarter 2011 with revenue increasing at a double-digit rate and gross margin expanding by 90 basis points (bps) year over year.
the United States Asia Europe Latin America Japan
Tellabs Woes Continue, Outlook Weak
Tellabs Inc. TLAB $334.2 million $339 million North America
$20.1 million 6 cents $64.1 million 16 cents 3 cents
GAAP gross margin was 37.4% compared with 53.5% in the year-ago quarter. Massive decline in gross margin was mainly attributable to higher cost of revenue for Product segment.
$150.4 million $146.9 million
$7.3 million $50 million
$53.3 million $165.9 million $85.4 million $151.8 million
$1,058 million $1,134.5 million
Future Financial Outlook
$325 million to $345 million $130 million
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Leon Zacks http://at.zacks.com/?id=5518
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SOURCE Zacks Investment Research, Inc.