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What to Expect from Oracle Earnings with ORCL Stock at Record High

Benjamin Rains

Oracle ORCL shares have surged roughly 18% this year to outpace the S&P 500, its industry, and fellow giants such as Amazon AMZN. Now, with the historic tech powerhouse set to report its Q3 fiscal 2019 financial results after the closing bell Thursday, let’s see what to expect.

Overview

Oracle stock closed regular trading Wednesday up 0.49% at $53.06 a share, after touching yet another brand new 52-week and all-time high. This puts ORCL stock above its current $52 a share average price target for the 21 analysts that have provided one.

Oracle is coming off a quarter that saw its revenue come in flat at $9.56 billion. With that said, the company’s largest segment, cloud services and license support, jumped 3% to $6.64 billion in Q2. Still, if we look back over the past three years, we can see that Oracle has fallen far behind its peers. This group includes Amazon, Microsoft MSFT, Salesforce CRM, Adobe ADBE, VMware VMW, Intuit INTU, and a few others.

Going forward, Oracle hopes to expand its cloud business to help inspire investor confidence beyond its wave of share buybacks, which came in second only to Apple AAPL last year, according to a Goldman Sachs GS report.

 

 

Outlook & Earnings Trends

Moving on, Oracle’s third-quarter revenue is projected to fall 1.9% to hit $9.59 billion, based on our current Zacks Consensus Estimate. Meanwhile, the company’s full-year revenue is expected to slip 0.83% to reach $39.55 billion.

At the bottom end of the income statement, Oracle’s adjusted quarterly earnings are projected to pop 1.2% to reach $0.84 a share. This would mark a significant downturn from last quarter’s 16% bottom-line expansion. On top of that, Oracle’s quarterly earnings consensus estimate fell $0.01 a share over the course of the quarter.

On top of that, the company has seen its full-year earnings estimate revision activity trend in the wrong direction recently. Oracle is currently a Zacks Rank #4 (Sell) based, for the most part, on its negative earnings revision activity. Plus, the company sports a “C” grade for Value and a “D” for Growth in our Style Scores system.

Oracle is scheduled to release its third-quarter fiscal 2019 financial results after the closing bell on Thursday, March 14. Make sure to come back to Zacks for a full breakdown of ORCL’s actual quarterly metrics.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
VMware, Inc. (VMW) : Free Stock Analysis Report
 
Oracle Corporation (ORCL) : Free Stock Analysis Report
 
Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
 
Intuit Inc. (INTU) : Free Stock Analysis Report
 
salesforce.com, inc. (CRM) : Free Stock Analysis Report
 
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
 
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