Why SAP Stock Crashed Today
Shares of SAP (NYSE: SAP) fell as much as 23.9% on Monday morning, recovering to a slightly milder 23.1% drop as of 12:45 p.m., EDT. The German provider of enterprise software and related services updated its full-year guidance and longer-term business plan, including a heavy top-line hit from currency exchange effects and the global COVID-19 pandemic.
SAP lowered the midpoint of its full-year revenue guidance range by 2%, stopping near $32.5 billion. Adjusted revenues should land in the neighborhood of $8.29 per share, 0.5% below the existing guidance figures. A strong cash flow trend throughout the year led to rosier guidance for SAP's cash generation. The operating cash flow target was raised by 20% to $7.1 billion, while free cash flows were lifted by 13% to approximately $1.1 billion.
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Source Fool.com
