What to Expect When Oracle Reports After the Close

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Oracle Corp. (NYSE: ORCL) is scheduled to release its most recent quarterly results after the markets close on Monday. Consensus estimates from Thomson Reuters call for $0.69 in earnings per share (EPS) and $9.31 billion in revenue. The fiscal first quarter of last year reportedly had EPS of $0.62 on $9.21 billion in revenue.

Over the summer, Oracle issued guidance for this quarter, saying that it expects to see EPS in the range of $0.67 to $0.69 and revenues up about 1% to 3% on a constant currency basis.

One thing the company has started doing for its financial reports is that it will not be listing its platform-as-a-service (PAAS) and software-as-a-service (SAAS) segment revenues going forward. This started in the fiscal fourth quarter over the summer, and it did have some investors concerned.

Jefferies analysts had this to say about Oracle’s most recent quarter:

Oracle reported fourth quarter results beating expectations. That said, the company re-segmented revenue in the release, resulting in a discontinuation of Cloud disclosure, which appeared to increase investor caution. Looking ahead, we note that while current deferred revenue came in below consensus, this was partially due to the accounting change. However, non-GAAP operating margins increased 1.2% year over year to 47.1%, and we note that fiscal 2018 free cash flow grew 5%.

Excluding Monday’s move, Oracle has underperformed the broad markets, with its stock down about 7% in the past 52 weeks. In just 2018 alone, the stock is up only 4%.

A few analysts weighed in on Oracle ahead of the reported:

  • KeyCorp has a Hold rating.
  • Barclays has an Overweight rating with a $60 target.
  • UBS Group has a Positive rating and a $51 price target.
  • Nomura has a Buy rating with a $59 target price.
  • Raymond James has an Outperform rating and a $54 target.
  • Rosenblatt Securities has a Neutral rating with a $51 target.

Shares of Oracle were last seen up less than 1% at $49.65, with a consensus analyst price target of $54.04 and a 52-week range of $42.57 to $53.48.