What to Expect From Oracle Earnings

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Oracle Corp. (NYSE: ORCL) is scheduled to report its fiscal second-quarter financial results after the markets close on Thursday. The consensus estimates call for $0.60 in earnings per share (EPS) and $9.12 billion in revenue. The same period of last year reportedly had $0.63 in EPS and revenue of $9.00 billion.

During the first quarter, the overall top-line growth of Oracle’s two strategic businesses was driven by SaaS and PaaS revenues growing 82% in constant currency, substantially outperforming guidance. As the SaaS and PaaS businesses continue their rapid growth, management expects gross margins to climb from 62% this quarter toward its 80% target.

Shares started out 2016 with a bang, but then for most of the spring and summer traded sideways. Oracle saw a slight pull back in the fall, but ultimately shares have recovered close to their highs.

So far in 2016, Oracle has performed more or less in line with the broad markets, with the stock up about 11.5%.

A few analysts weighed in on Oracle ahead of the earnings report:

  • Rosenblatt Securities reiterated a Buy rating with a $48 price target.
  • RBC Capital Markets reiterated an Outperform rating with a $43 price target.
  • Cowen reiterated a Buy rating with a $46 price target.
  • D.A. Davidson has a Buy rating with a $52 price target.
  • Drexel Hamilton has a Buy rating with a $47 price target.
  • Jefferies reiterated a Buy rating with a $51 price target.
  • Goldman Sachs has a Buy rating with a $47 price target.
  • Sanford Bernstein reiterated an Outperform rating with a $52 price target.
  • BTIG Research has a Buy rating with a $47 price target.
  • Wedbush has a Neutral rating with a $41 price target.

Shares of Oracle were trading at $40.75 on Wednesday, with a consensus analyst price target of $44.13 and a 52-week trading range of $33.13 to $42.00.

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