Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Oracle Results Seen as 'Solid' Despite EPS Miss

Published 09/13/2022, 06:59 AM
Updated 09/13/2022, 07:17 AM
© Reuters Oracle (ORCL) Results Seen as 'Solid' Despite EPS Miss

© Reuters Oracle (ORCL) Results Seen as 'Solid' Despite EPS Miss

By Senad Karaahmetovic

Shares of Oracle (NYSE:ORCL) are up nearly 2% in premarket Tuesday trading after the company reported its FQ1 results yesterday.

Oracle delivered an adjusted EPS of $1.03 on sales of $11.45 billion, which compares to the consensus of $1.08 on sales of $11.33 billion. The company said revenue from cloud services and license support jumped 14% YoY to $8.4 billion.

"Even without Cerner, our total revenue grew 8% in constant currency driven by Oracle's rapidly growing applications and infrastructure cloud businesses. These two cloud businesses now account for more than 30% of our total revenue,” said Oracle CEO, Safra Catz.

Oracle also declared a quarterly cash dividend of $0.32 per share, payable on October 25 to stockholders of record as of the close of business on October 12.

An Evercore ISI analyst raised the price target to $87 from $78 after “solid” results.

“While there are some moving parts in terms of the Cerner (NASDAQ:CERN) integration and the expanding cap-ex (and margin pressure) related to the growth in OCI, we believe the broader trends are heading in the right direction as it relates to the Cloud opportunity and we expect to get some additional color at the company’s upcoming analyst day (Oct 20th),” he said in a client note.

A Bank of America analyst also raised the price target as he went to $90 from $80 on Neutral-rated Oracle shares.

“Our estimate for FY23 margin is largely unchanged at 42%, as gross margin upside is offset by higher R&D and sales/marketing in or model. Revenue is expected to accelerate to double digits before EPS. Timing for the EPS reacceleration is unclear, highlighting an ongoing investment cycle,” he wrote.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.