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Well, let's take a look at some stocks on the move today in Europe. I'm Stephen Carroll with Anna Edwards and we're joined by Bloomberg's Tea Added Bio Tea. Good morning. Let's start then with SAP, one of the companies that's seeing pretty significant rises this morning.
Yes, a substantial jump here this morning for SAP. They have been up over seven percent this morning, and that's really based on their earnings and in particular one metric which quite a lot of commentators are drawing out, and that is the current cloud backlog number, which is a crucial indicator for future revenue. And in that area, SAP maintained a twenty five percent growth rate on constant currency terms over the first quarter. That number is actually a
head of expectations as well. Anna, I know you spoke to the CFO of SAP this morning and that number was actually one of the first things he mentioned, really emphasizing that pipeline strength, especially amidst the concerns about new AI tools perhaps anthropic and of course the conflicts in the Middle East. So it does seem like analysts are
convinced by this. This morning they've said these results are reassuring, Deutsche Bank in particular, calling them a welcome relief, especially actually in terms of some of the soft peer reportings.
That we've seen over the last few days.
There was that sector wide sell off on Thursday, City saying the latest numbers show resilience as well, so seemingly a positive morning all around for SAP.
Yeah, resilience and reassurance seemed to be the messages coming through from analysts on that front, despite concerns then around the pricing model and how that evolves into the future. Let's talk about Volvo. This is not the cars, this is the trucks. They've raised their market forecast then, ta, how are investors reacting to that newslaw.
Yes, we have seen some results from Volvo's at European truck making business this morning. Those numbers seem to have been digested positively by investors. Volvo shares up as much as two point six percent today, and that's because the firm has shared that orders have increased, so there's a positive outlook for the market, and it seems like this could have a knock on effect for the rest of
the business. One analyst at Morgan Stanley saying trucks drove the five percent e bit beat for the firm, But the overall theme here, as you're mentioning, seems to be stability. We've heard from Bernstein that's calling out the firm's strong service business, and they also note that there hasn't yet been an impact from the Middle East conflict, so nothing there on those higher fuel prices.
Expected high fuel prices.
But I think, as we saw with SAP, it's really in this uncertain macro environment. It does seem the analysts and perhaps investors are really looking to the future and they're on the hunt for signs of resilience and pipeline strength, particularly as so many things pertaining to the geopolitical situation and the global economic outlook as a whole remain up in the air.
We're going to Norway next Teawa to talk about Tumraus Systems. What's the news from them? Those shows lower this morning.
Yeah, So anyone that's not familiar.
Tomra Systems is a Norwegian multinational. They specialize in a sensor based sorting collection technology, so really aiming to facilitate the circular economy through waste management. They've seen a big drop this morning, down as much as twenty one percent, one of the biggest losers on the stock six hundred, and that's after they reported earnings which fell short of expectations.
An lists are saying their performance was overall underwhelming. Jeffries says the myths came mainly in recycling and that was
due to low installation volumes which weighed on results. But in terms of what Tomra itself has said, they say that the growth prospects for food revenues in twenty twenty six are estimated to be in the mid to high single digit range, so perhaps some relief there, But they have noted that the current market uncertainty, so trade tensions and tariffs could negatively impact customers, specifically their investment sentiment, and it could also postpone orders over the coming quarters,
so perhaps a few more hurdles to in the near future.
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