What to Expect From Oracle Earnings
Oracle is scheduled to release its fiscal fourth-quarter financial results after the markets close on Wednesday.
Oracle Corp. (NYSE: ORCL) is scheduled to release its fiscal fourth-quarter financial results after the markets close on Wednesday. The consensus estimates from Thomson Reuters are calling for $0.78 in earnings per share (EPS) and $10.45 billion in revenue. The same period of last year reportedly had EPS of $0.81 and $10.6 billion in revenue.
In its most recent earnings report, management noted that its hyper-growth in the cloud has rapidly driven both Oracle’s SaaS and PaaS businesses to scale. On an annualized non-GAAP basis, its total cloud business has reached the $5 billion mark, and the SaaS and PaaS businesses grew at the astonishing rate of 85% in the fiscal third quarter.
This growth and the resulting scale enabled its SaaS and PaaS businesses to increase gross margins to 65%. Its new, large, fast growing, high-margin cloud businesses are driving Oracle’s third-quarter total revenue and earnings up and improving nearly every important non-GAAP business metric: total revenue was up, margins were up, operating income was up, net income was up, EPS were up.
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A few analysts weighed in on Oracle ahead of earnings:
- Jefferies has a Buy rating with a $52 price target.
- Sanford Bernstein has an Outperform rating with a $54 price target.
- Wedbush has a Neutral rating with a $43 price target.
- Goldman Sachs has a Buy rating with a $49 price target.
- Canaccord Genuity has a Buy rating with a $49 price target.
- Societe Generale has a Hold rating with a $50 price target.
Excluding Wednesday’s move, the stock has outperformed the broad markets with a gain of about 19% year to date. Over the past 52 weeks, the stock is up only 15%.
Shares of Oracle were last seen up 1.1% at $46.34 on Wednesday, with a consensus analyst price target of $48.64 and a 52-week range of $37.62 to $46.99.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
