Apps & Software

Enterprise Companies At Mercy Of Oracle Earnings (ORCL, MSFT, SAP, CSCO)

After today’s close we’ll get to see earnings out of Oracle Corp. (NASDAQ: ORCL). The estimates for the enterprise software company from First Call are $0.30 EPS on $5.42 billion in revenues.  Next quarter estimates are $0.44 EPS on $6.74 billion in revenues. Estimates for fiscal May-2008 are $1.27 EPS on $22.12 billion in revenues. Estimates for fiscal May-2009 are $1.45 EPS on $24.64 billion in revenues

Analysts have an average price target north of $25.00.  April-expiration Options have too much time value to be of great indication today, but based upon the pullback seen it looks like options traders are braced for a move of more than $1.20 in either direction

Prior to today’s sell-off, shares were getting into near-term overbought territory on most charting techniques.  Shares are down over 1% mid-day at $20.79, and this level is still above its 200-day moving average of $20.52.  Oracle’s 52-week trading range is $17.89 to $23.31.

As Oracle is “all about enterprise spending” we’ll be watching Microsoft (NASDAQ: MSFT) and SAP AG (NYSE: SAP) on the software side, and will actually be watching Cisco Systems (NASDAQ: CSCO) IF Larry Ellison makes any huge call on trends changing in broad-based tech spending trends in the enterprise accounts.

Jon C. Ogg
March 26, 2008

Jon Ogg produces the Special Situation Investing Newsletter and can be reached at; he does not own securities in the companies he covers.