What to Expect From Oracle Earnings

By Chris Lange Updated Jan 12, 10:51AM EST · Published Jun 21, 10:25AM EDT

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What to Expect From Oracle Earnings — © Thinkstock

Oracle Corp. (NYSE: ORCL) is scheduled to release its fiscal fourth-quarter financial results after the markets close on Wednesday. The consensus estimates from Thomson Reuters are calling for $0.78 in earnings per share (EPS) and $10.45 billion in revenue. The same period of last year reportedly had EPS of $0.81 and $10.6 billion in revenue.

In its most recent earnings report, management noted that its hyper-growth in the cloud has rapidly driven both Oracle’s SaaS and PaaS businesses to scale. On an annualized non-GAAP basis, its total cloud business has reached the $5 billion mark, and the SaaS and PaaS businesses grew at the astonishing rate of 85% in the fiscal third quarter.

This growth and the resulting scale enabled its SaaS and PaaS businesses to increase gross margins to 65%. Its new, large, fast growing, high-margin cloud businesses are driving Oracle’s third-quarter total revenue and earnings up and improving nearly every important non-GAAP business metric: total revenue was up, margins were up, operating income was up, net income was up, EPS were up.

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A few analysts weighed in on Oracle ahead of earnings:

Jefferies has a Buy rating with a $52 price target.
Sanford Bernstein has an Outperform rating with a $54 price target.
Wedbush has a Neutral rating with a $43 price target.
Goldman Sachs has a Buy rating with a $49 price target.
Canaccord Genuity has a Buy rating with a $49 price target.
Societe Generale has a Hold rating with a $50 price target.

Excluding Wednesday’s move, the stock has outperformed the broad markets with a gain of about 19% year to date. Over the past 52 weeks, the stock is up only 15%.

Shares of Oracle were last seen up 1.1% at $46.34 on Wednesday, with a consensus analyst price target of $48.64 and a 52-week range of $37.62 to $46.99.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.