Cantor Maintains Buy on Oracle Corporation Following 3Q:FY15 Results

In a research report issued today, Cantor analyst Brian White maintained a Buy rating on Oracle Corporation (NYSE:ORCL) with a $48 price target, after the company reported third-quarter financial results and held a conference call last night to provide a corporate update. Oracle shares are currently trading at $44.91, up $2.04 or 4.76 percent.

White noted, "Oracle reported solid 3Q:FY15 results with another quarter of strong momentum across its cloud portfolio and constructive trends in the database market as 12c continues to ramp. Oracle also announced plans to increase its quarterly dividend by 25% to $0.15 from $0.12. The headwind from a strong dollar against major currencies (e.g., euro, Japanese yen) worsened in 3Q:FY15 and is having an even greater impact on 4Q:FY15. However, this is completely out of Oracle's control and thus the reason for providing guidance on a constant currency basis. Although we remain positive on Oracle's cloud momentum and ramp of 12c, we are lowering our estimates entirely due to the negative impact of FX."

The analyst continued, "For 4Q:FY15, we are cutting our revenue forecast to $10.71 billion from $11.35 billion and trimming our pro forma EPS estimate to $0.84 from $0.92 on the FX headwind. Given this worsening FX headwind, we are cutting our FY:15 pro forma EPS projection to $2.83 from $2.91 (consensus is at $2.95)."

According to, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Brian White has a total average return of 18.6% and a 66.8% success rate. White has a 4.1% average return when recommending ORCL, and is ranked #36 out of 3533 analysts.


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