Why Analysts Are Sidelined on Oracle After Earnings

Chris Lange

Oracle Corp. (NYSE: ORCL) released fiscal first-quarter financial results after markets closed Wednesday. Overall the report was not received well, not necessarily for the results but CEO Mark Hurd is taking a leave of absence for some time. Analysts were quick to weigh in on the results.

24/7 Wall St. has included some highlights from the earnings report, as well as what analysts are saying after the fact.

The firm said that it had $0.81 in earnings per share (EPS) and $9.2 billion in revenue, which compared with consensus estimates of $0.81 in EPS and $9.29 billion in revenue. The fiscal first quarter of last year reportedly had $0.71 in EPS and $9.2 billion in revenue.

Total quarterly revenues were slightly higher, and up by 2% in constant currency, compared to the same period of last year. Cloud Services and License Support revenues totaled $6.8 billion, while Cloud License and On-Premise License revenues were $812 million.

At the same time, short-term deferred revenues were $10.1 billion. Operating cash flow for the trailing 12 months was $13.8 billion.

Here’s what analysts said after the fact:

  • Argus reiterated a Buy rating.
  • Wedbush reiterated a Neutral rating with a $55 target.
  • Sanford Bernstein has a Buy rating with a $66 price target.
  • UBS Group has a Neutral rating and a $57 price target.
  • Goldman Sachs rates it as Buy with a $62 price target.
  • Barclays reiterated its as Equal Weight and cut its target from $59 to $57.
  • BMO Capital Markets reiterated its Market Perform rating and raised its target from $59 to $60.
  • JPMorgan has a Neutral rating with a $56 target price.
  • RBC has a Neutral rating and a $57 price target.
  • Credit Suisse has a Buy rating with a $62 target price.

Shares of Oracle traded relatively flat at $53.71 on Friday, in a 52-week range of $42.40 to $60.50. The consensus price target is $56.47.