Why Analysts Are Sidelined on Oracle After Earnings

By Chris Lange Updated Jan 6, 2:31AM EST · Published Sep 13, 10:50AM EDT

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Why Analysts Are Sidelined on Oracle After Earnings — © Justin Sullivan / Getty Images

Oracle Corp. (NYSE: ORCL) released fiscal first-quarter financial results after markets closed Wednesday. Overall the report was not received well, not necessarily for the results but CEO Mark Hurd is taking a leave of absence for some time. Analysts were quick to weigh in on the results.

24/7 Wall St. has included some highlights from the earnings report, as well as what analysts are saying after the fact.

The firm said that it had $0.81 in earnings per share (EPS) and $9.2 billion in revenue, which compared with consensus estimates of $0.81 in EPS and $9.29 billion in revenue. The fiscal first quarter of last year reportedly had $0.71 in EPS and $9.2 billion in revenue.

Total quarterly revenues were slightly higher, and up by 2% in constant currency, compared to the same period of last year. Cloud Services and License Support revenues totaled $6.8 billion, while Cloud License and On-Premise License revenues were $812 million.

At the same time, short-term deferred revenues were $10.1 billion. Operating cash flow for the trailing 12 months was $13.8 billion.

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Here’s what analysts said after the fact:

Argus reiterated a Buy rating.
Wedbush reiterated a Neutral rating with a $55 target.
Sanford Bernstein has a Buy rating with a $66 price target.
UBS Group has a Neutral rating and a $57 price target.
Goldman Sachs rates it as Buy with a $62 price target.
Barclays reiterated its as Equal Weight and cut its target from $59 to $57.
BMO Capital Markets reiterated its Market Perform rating and raised its target from $59 to $60.
JPMorgan has a Neutral rating with a $56 target price.
RBC has a Neutral rating and a $57 price target.
Credit Suisse has a Buy rating with a $62 target price.

Shares of Oracle traded relatively flat at $53.71 on Friday, in a 52-week range of $42.40 to $60.50. The consensus price target is $56.47.

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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.