46.45 -0.07 (-0.15%)
After hours: 7:36PM EDT
|Bid||46.00 x 900|
|Ask||46.30 x 1200|
|Day's Range||45.46 - 46.60|
|52 Week Range||44.04 - 53.48|
|PE Ratio (TTM)||54.41|
|Earnings Date||Jun 19, 2018|
|Forward Dividend & Yield||0.76 (1.64%)|
|1y Target Est||55.73|
Earnings out of FedEx and another report on the housing market will be highlights for investors on Tuesday amid a slow week for corporate and economic news.
Oracle reports quarterly earnings Tuesday, with investors focusing mainly on the company's migration to a cloud-computing business model that is taking longer than expected.
Earlier in the series, we discussed Oracle’s (ORCL) position in the IaaS (infrastructure-as-a-service) and PaaS (platform-as-a-service) spaces and compared its market share, revenue, and growth rate to those of its peers. Oracle’s PaaS and IaaS cloud offerings revenue, despite being at a smaller base of ~$416 million, has grown less than the revenues of top players such as Amazon (AMZN), Microsoft (MSFT), and Google (GOOG). While Google has reported growth of 120%, Microsoft’s cloud offerings have grown 98% on a YoY (year-over-year) basis.
In the previous article, we discussed the market’s expectations for Oracle’s (ORCL) fiscal fourth quarter. We also discussed Oracle’s cloud offerings growth in the fiscal third quarter.
In this earnings season, Oracle (ORCL) is scheduled to announce its fiscal fourth-quarter results on June 19. Estimize, a crowdsourced financial estimate platform, expects the company to report revenue and EPS of $11.2 billion and $0.94, respectively, in the quarter.
The last time the company reported, EPS came in above estimates, $0.83 versus estimates for $0.72, while revenue was just below what analysts were expecting, $9.77 billion versus estimates for $9.78 billion. At the same time, analysts were disappointed in the 32 percent year-over-year growth in total cloud revenue, which had slowed from 44 percent growth in fiscal Q2. Management’s fiscal Q4 cloud revenue guidance for 19 percent to 23 percent growth was also below analyst expectations.
The last time the company reported, EPS came in above estimates, $0.83 versus estimates for $0.72, while revenue was just below what analysts were expecting, $9.77 billion versus estimates for $9.78 billion. At the same time, analysts were disappointed in the 32% year-over-year growth in total cloud revenue, which had slowed from 44% growth in fiscal Q2. Management’s fiscal Q4 cloud revenue guidance for 19% to 23% growth was also below analyst expectations.
While Magento ensured Adobe’s entry into the e-commerce space, DataScience.com is expected to give Oracle’s efforts a boost in the AI and machine-learning spaces, which are viewed as two of the fastest-growing segments in the technology sector. According to a study done by Aheadworks, an industry partner of Magento, WooCommerce and Magento held market shares of 18% and 16%, respectively, in the fragmented web store space in 2017.
Of the 37 analysts tracking Oracle (ORCL) stock on June 6, 19 (51%) recommended “buy,” two rated it as “overweight,” 15 recommended “hold,” and one recommended “sell,” as shown in the graph below. Analysts’ average target price for VMware was $55.08 on June 6, and the stock’s closing price was $47.75. Oracle has returned 5.2% in the last year, 4.2% in the last month, and 1.7% in the last week, whereas peers Microsoft (MSFT) and IBM (IBM) have returned 3.1% and 1.6%, respectively, in the last week.
On June 12, Accenture’s (ACN) market cap stood at $104.7 billion. Likewise, the market caps of other IT players Microsoft (MSFT), IBM (IBM), and Oracle (ORCL) came in at $776.4 billion, $134.8 billion, and $197.8 billion, respectively. Other valuation metric comparison
The company’s fully autonomous self-driving database, which runs on Oracle cloud, could give it a competitive edge against peers Microsoft (MSFT), IBM (IBM), Google (GOOGL), and Amazon (AMZN). Oracle believes that its autonomous self-driving database is one of a kind, reducing human labor and error and thereby saving time and labor costs. Oracle is optimistic about its new autonomous database and expects to launch analytics, mobility, application development, and integration services in future months.
Earlier, we discussed SAP’s (SAP) Coresystems acquisition and the factors that enabled its stock to touch an all-time high. DataScience.com provides an enterprise data platform that ensures collaboration and scalability in data science, empowering teams to collaborate on data-driven projects.
On June 6, Oracle’s (ORCL) market capitalization was $194.9 billion, whereas Microsoft (MSFT), IBM (IBM), and Accenture (ACN), had market caps of $787.5 billion, $132.8 billion, and $104.6 billion, respectively, as shown in the graph below. Oracle was trading at a forward EV1-to-EBITDA multiple of ~9.9x on June 6, while Microsoft, IBM, and Accenture had forward EV-to-EBITDA multiples of ~16.3x, ~8.8x, and, ~15.3x, respectively. Oracle was trading at a forward PE multiple of ~19.2x, while Microsoft, IBM, and Accenture had forward PE multiples of ~28.5x, ~12.2x, and ~27.6x, respectively.
was the first software giant to stake a claim in blockchain, the technology that underlies cryptocurrency, by launching a "blockchain-as-a-service" product assisting developers in building blockchain apps. "We're interested in blockchain because our customers are," said Mark Russinovich, CTO of Microsoft's Azure cloud. Experts see supply chain and payments as two areas where blockchain may actually make an impact.