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Top Analyst Sets Expectations on Oracle (ORCL) Ahead of Upcoming Earnings


As a tech mega-cap worth about $188 billion that operates extensively throughout the world across a wide range of end markets, Oracle (NYSE:ORCL) is a company that is widely followed by many analysts and investors.

Its next quarterly report is around the corner and Oracle is scheduled to report fourth-quarter fiscal 2018 earnings after the closing bell on Tuesday, June 16. The Street, first and foremost, will be looking to see if Oracle’s choppy cloud performance in recent quarters has been improved.

Monness analyst Brian White believes Oracle will meet his 4QFY18 revenue estimate of $11.18 billion and slightly exceed his non-GAAP EPS projection of $0.94.

White opined, “The cloud trends across our universe have been stronger than expected thus far in 2018; however, Oracle has struggled to meet high cloud expectations over the past few quarters. We are projecting total 4QFY18 cloud sales of $1.71 billion with cloud SaaS revenue of $1.21 billion and cloud PaaS/IaaS revenue of $499 million. Recall, Oracle’s cloud sales outlook calls for 19-23% growth in US$. However, we are projecting new software licenses revenue of $2.36 billion to fall YoY for the second consecutive quarter at down 10%. As such, we are estimating new software licenses & cloud software subscriptions of $4.07 billion and software license updates & product support revenue of $5.18 billion, which equates to $9.25 billion in total cloud & on-premise software revenue. Finally, our model reflects deferred revenue of $8.96 billion and calculated billings of $12.14 billion.”

Net net, White reiterates a Neutral rating on Oracle shares, without providing a price target.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Brian White has a yearly average return of 17.5% and a 69% success rate. White has a 5% average return when recommending ORCL, and is ranked #93 out of 4830 analysts.

Out of the 32 analysts polled in the past 12 months, 20 rate Oracle stock a Buy, while 12 rate the stock a Hold. With a return potential of 21%, the stock’s consensus target price stands at $56.67.