SAP shares fell 3% yesterday after the German-based business software giant posted "lackluster" year-end results "driven by weak license revenue performance in its Americas region," based in Newtown Square, writes Yun Kim, analyst for Janney Capital Markets, in a report to clients today. SAP 4Q12 report here.
Newer business software lines incluidng "HANA, mobile and cloud busineses all performed well," but the profit margin, at 38.8%, was below most expectations. even with record earnings, and even after SAP cut back on hiring.
"Trends remain positive," and Kim's still projecting increased profitability this year despite U.S.-Canada-Latin America sales "clearly below our expectation." "Large deal" business "remains healthy," and licensed sales should grow above 10% this year.