In­vestors hope Or­a­cle will see re­cov­ery in earn­ings pre­view

Financial Mirror (Cyprus) - - FRONT PAGE -

Or­a­cle Corp. (NYSE: ORCL) is set to re­port earn­ings after the mar­ket closes on Thurs­day. In­vestors are hop­ing that the en­ter­prise soft­ware gi­ant can bring a re­cov­ery, after the stock price tanked on the heels of Or­a­cle’s pre­vi­ous earn­ings re­port. Thom­son Reuters has con­sen­sus es­ti­mates of $0.64 in earn­ings per share and $8.77 bln in rev­enues. This would com­pare to the same quar­ter a year ago when it posted $0.59 in earn­ings per share and $8.38 bln in rev­enues. Es­ti­mates for the com­ing quar­ter are $0.74 in earn­ings per share and $9.72 bln in rev­enues.

Re­cently, Or­a­cle has made moves to take over Front Porch Dig­i­tal, which stores dig­i­tal me­dia for more than 500 or­gan­i­sa­tions world­wide, rang­ing from NASCAR to the U.S. Li­brary of Congress. This ap­pears to have been one of the pos­si­ble boosts to push up the price over the course of the day on Mon­day, along with its ex­pand­ing cloud op­er­a­tions for Trans­porta­tion Man­age­ment and Global Trade Man­age­ment.

The vice pres­i­dent of Value Chain Ex­e­cu­tion Prod­uct Strat­egy, Derek Git­toes had this to say about Or­a­cle’s new in­no­va­tions in the cloud: “With this an­nounce­ment, com­pa­nies can now lever­age the ad­van­tages of cloud to achieve th­ese same ben­e­fits with­out com­pro­mise, while also ac­cel­er­at­ing de­ploy­ment time­lines, re­duc­ing IT cap­i­tal costs, and con­trol­ling their long-term cost of own­er­ship. This an­nounce­ment is fur­ther proof of Or­a­cle’s strate­gic com­mit­ment to de­liver a com­plete suite of in­dus­try-lead­ing sup­ply chain so­lu­tions on the cloud.” In the weeks be­fore the an­nounce­ment, Or­a­cle has seen its shares rise from Au­gust to Septem­ber, but now de­spite th­ese re­cent de­vel­op­ments in the days ahead of the re­port, shares have fallen almost 4% from highs this month. Be­fore the earn­ings came out in the pre­vi­ous quar­ter, shares reached a 52-week high but quickly re­ceded after re­ported earn­ings missed the mark.

With shares re­cently trad­ing at $40.53, the con­sen­sus an­a­lyst price tar­get is $44.25 and the 52-week range is $32.00 to $43.19. Or­a­cle is trad­ing at 11.77 times its fu­ture earn­ings. Or­a­cle can in­flu­ence many en­ter­prise soft­ware com­pa­nies share prices, de­pend­ing upon its bias. Stay tuned.

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