Apps & Software

Oracle Earnings Preview (ORCL)

Jon C. Ogg

Oracle Corporation (NASDAQ: ORCL) is set to report earnings after the close of trading today.  Thomson Reuters has estimates for earnings of $0.46 EPS and $8.34 billion in revenue. For the quarter ahead, those estimates are $0.46 EPS and $8.41 billion in revenues.  Shares are now $30.67 and the new year high was put in at $30.77 today; the new 52-week range is $21.24 to $30.77.

The real leader in enterprise software may impact all of the enterprise software and even hardware players.  As far as Oracle, we’ll be paying attention to Cisco for that enterprise spending money even though these are mostly different dollars spent.

Oracle obviously has no chart issues based around moving averages since it is basically at fresh highs. Now the question boils down to whether its stock can live up to its performance.

Oracle is at $30.67 and its performance has shares close to the analyst consensus target of $31.77.  Macquarie this morning raised its rating to Outperform and a $47 price target.

Only about 15,000 contracts of the DEC-2010 CALLS in Oracle traded on Wednesday. So far this morning after two hours we have seen only about 13,000 of the CALLS trade for DEC-2010. Based upon speculative contracts, it appears as though options traders are braced for a move of up to roughly $0.80 to $0.85 on the news.

JON C. OGG