Technology

What Analysts Are Saying About Oracle After Earnings

Chris Lange

Published: September 19, 2018 9:50 am

Last Updated: January 11, 2020 5:40 pm

Oracle Corp. (NYSE: ORCL) released its fiscal first-quarter financial results after markets closed on Monday. While the report was not that great, it wasn’t half bad either. Analysts seemed to take a cue from this and their responses to the report were not uniform, with some taking a positive perspective and others still on the fence.

Here, 24/7 Wall St. has included some brief highlights from the report, as well as what analysts said about the tech giant after the fact.

The company posted $0.71 in earnings per share (EPS) and $9.2 billion in revenue, which compares with consensus estimates of $0.69 in EPS and revenue of $9.31 billion. The same period of last year reportedly had EPS of $0.62 on $9.21 billion in revenue.

Short-term deferred revenues were up 2% to $10.3 billion compared to a year ago. Operating cash flow was up 5% to $15.5 billion during the trailing 12 months.

In terms of its segments, the company reported:

• Cloud Services and License Support revenues increased 3% year over year to $6.61 billion.
• Cloud License and On-Premise License revenues decreased 3% to $867 million.
• Hardware revenues decreased 4% to $904 million.
• Services revenues decreased 5% to $813 million.

Here’s what analysts had to say:

• Merrill Lynch reiterated a Neutral rating and raised its price target to $55 from $51.
• Citigroup reiterated a Neutral rating and lowered its price target from $51 to $49.
• Wells Fargo reiterated an Outperform rating and lowered its target to $60 from $62.50.
• Nomura reiterated a Buy rating and lowered its price target to $58 from $59.
• RBC reiterated a Sector Perform rating and raised its target from $52 to $53.
• Credit Suisse reiterated a Buy rating with a $60 price target.
• Wedbush reiterated a Neutral rating with a $49 price target.
• Stifel reiterated a Hold rating and lowered its target to $49 from $50.
• JPMorgan reiterated a Neutral rating with a $53 price target.
• Goldman Sachs reiterated a Buy rating with a $55 price target.

Shares of Oracle were last seen trading at $49.03, with a consensus analyst price target of $53.07 and a 52-week range of $42.57 to $53.48.