Oracle (ORCL) to Report Q2 Earnings: What's in the Cards?
Oracle ORCL is scheduled to release second-quarter fiscal 2024 results on Dec 11, after market close.
For second-quarter fiscal 2024, Oracle anticipates total revenue growth rate, including Cerner on a year-over-year basis, in the range of 5-7% at USD and 3-5% at constant currency (cc). The Zacks Consensus Estimate for revenues is pegged at $13.05 billion, indicating an increase of 6.32% on a year-over-year basis.
Oracle expects non-GAAP earnings growth rate on a year-over-year basis in the range of 7-11% at cc and $1.30-$1.34 per share in USD.
The Zacks Consensus Estimate for earnings has remained steady at $1.32 per share in the past 30 days, suggesting a 9.09% increase from the year-ago fiscal quarter’s reported figure.
Over the trailing four quarters, Oracle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 3.8%.
Oracle Corporation Price and EPS Surprise
Oracle Corporation price-eps-surprise | Oracle Corporation Quote
Factors to Consider
Accelerated digital transformation, along with the mainstream adoption of the hybrid/flexible work model, is likely to have driven demand for Oracle Cloud Infrastructure (“OCI”) services and the company’s other cloud-based applications in the to-be-reported quarter.
In the to-be-reported quarter, ORCL was selected by several new healthcare organizations across the United States for their clinical, financial and operational needs. The company was also chosen by law enforcement agencies to aid in safeguarding the citizens and local communities.
Team IM chose Oracle to construct New Zealand's first locally owned and operated hyperscale cloud. The company was also selected by Rheem to scale its global operations and support its mission to engineer high-quality and sustainable solutions.
The acquisition of Cerner in 2022, in an all-cash transaction amounting to $28.3 billion or $95 per share, is expected to have bolstered ORCL’s position in the lucrative healthcare domain. In the first quarter of fiscal 2024, Cerner contributed $0.6 billion to the total revenues driven by continued strength in the Fusion, Autonomous Database and OCI services.
For the fiscal second quarter of 2024, total cloud revenues, excluding Cerner, are expected to grow from 28% to 29% at cc and from 29% to 31% in USD.
Continued momentum in back-office cloud-based Fusion Human Capital Management solutions, along with NetSuite Enterprise Resource Planning (ERP) and Fusion ERP applications, is expected to have favored ORCL’s quarterly performance.
On Oct 10, Oracle announced that its Fusion Cloud Student software has been chosen by the University of Tennessee to streamline student processes.
The robust adoption of the company’s generative artificial intelligence (AI) services holds promise. In the to-be-reported quarter, Oracle announced the availability of NVIDIA AI Enterprise and DGX Cloud in the Oracle Cloud Marketplace, signaling its ongoing commitment to advancing AI.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Oracle this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Oracle has an Earnings ESP of 0.00% and currently has a Zacks Rank #3 . You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Campbell Soup CPB has an Earnings ESP of +0.07% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Campbell Soup is set to announce first-quarter fiscal 2024 results on Dec 6. Shares of CPB have lost 26.3% year to date.
Aldeyra Therapeutics ALDX has an Earnings ESP of +23.71% and a Zacks Rank #2 at present.
Aldeyra Therapeutics is set to announce third-quarter fiscal 2023 results on Dec 7. Shares of ALDX have lost 60.2% year to date.
Adobe ADBE has an Earnings ESP of +13.5% and carries a Zacks Rank of 2 at present.
Adobe is set to announce fourth-quarter and fiscal 2023 results on Dec 13. ADBE’s shares are up 82% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Aldeyra Therapeutics, Inc. (ALDX) : Free Stock Analysis Report
