SAP SE (SAP) raises guidance, Union Pacific (UNP) posts higher profits

Highlights

  • SAP SE (NYSE: SAP) adjusted revenue surged 5% YoY in Q3, FY21.

  • SAP expects its cloud and software revenue to be between €23.8 billion and €24.2 billion in FY21.

  • Union Pacific Corporation’s (NYSE: UNP) operating revenue jumped 13% YoY in Q3, FY21.

Software firm SAP SE (NYSE: SAP) stock fell 2.6%, while rail company Union Pacific Corporation (NYSE: UNP) stock traded flat after reporting their quarterly results on Thursday.

The SAP stock was priced at US$139.90, down 2.61%, and the UNP stock traded at US$228.805, up 0.35% at around 9:47 am ET from their previous closing prices.

Let's take a closer look at the quarterly earnings of the companies.

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SAP SE (NYSE: SAP)

SAP SE is a software company based in Walldorf, Germany. It provides enterprise software to its clients for managing their businesses and customer relations.

The company’s adjusted revenue increased by 5% YoY to €6.84 billion in Q3, FY21, while its adjusted EPS surged 2% YoY to €1.74. Its operating profit was €1.24 billion, as compared to €1.47 billion in the year-ago quarter.

The company's profit after tax was €1.41 billion against €1.65 billion in Q3, FY20.

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The company now expects its cloud and software revenue at constant currencies to be between €23.8 billion and €24.2 billion in fiscal 2021, up from its previous forecast of €23.6 billion and €24 billion.

The firm has a market cap of US$164.10 billion, a P/E ratio of 23.5, and a forward P/E one year of 28.11. Its EPS is US$5.92. The 52-week highest and lowest stock prices were US$151.48 and US$104.64, respectively. Its trading volume was 646,996 on October 20.

Third-quarter earnings of SAP SE (SAP) and Union Pacific Corporation (UNP).

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Union Pacific Corporation (NYSE: UNP)

Union Pacific is a railroad transportation company that connects more than 20 states in the US through rail and provides freight-hauling services. It is based in Omaha, Nebraska.

The company's operating revenue climbed 13% YoY to US$5.56 billion in Q3, FY21, while its operating income rose 20% YoY to US$2.43 billion.

The net income of UNP was US$1.67 billion, or US$2.57 per diluted share, as compared to US$1.36 billion, or US$2.01 per diluted share in Q3, FY20.

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In the third quarter, the firm has repurchased its 8.6 million shares for about US$1.8 billion.

The market cap of the company is US$149.52 billion, the P/E ratio is 26.11, and the forward P/E one year is 23.05. Its EPS is US$8.78. The stock saw the highest price of US$231.26 and the lowest price of US$171.50 in the last 52 weeks. Its share volume on October 20 was 3,454,194.

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Bottomline

Both the companies have witnessed considerable growth in recent months. The SAP stock rose 11.15% YTD, while the UNP stock grew 12.31% YTD. However, investors should consider the current market volatility and evaluate the stocks carefully before considering an investment.

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