Oracle Corporation (NYSE: ORCL) will release its fiscal Q1 2022 financial results on Monday, September 13, 2021, once the market closes.
What to look for
In fiscal 2021 the company performed exceptionally, and it is expected that it will carry that momentum into Q1 2022. The NetSuite and Fusion, cloud applications segments, are expected to continue growing and contribute to the company’s topline. In addition, the expected growth of the infrastructure cloud and applications will continue driving earnings. Notably, the MySQL and Oracle Autonomous Databases will continue driving revenue especially following the upgrade of MySQL into a high-performance processing engine called HeatWave.
Earnings: Stockearning’s Estimated EPS for Oracle is $0.97 per share, which represents a 4% YoY increase. Historical EPS performance indicates that in the past 12 quarters, the company has topped earnings estimates 11 times (91%) and only missed once (8%). In fiscal Q4 2021, the company beat EPS estimates of $1.19 and posted EPS of $1.4.
Revenue: In fiscal Q4 2021, the company reported revenues of $11.2 billion, representing an 8% YoY increase. Cloud service and license revenues were $7.4 billion, while cloud license and in-premise revenue grew 9% to $2.1 billion. Total fiscal 2021 revenues were $40.5 billion. For fiscal Q1 2022, the Texas-based tech company expects revenue of $9.8 billion.
Stock movement: Since the last earnings release, Oracle's stock price has gained 10.2%. Following the earnings release, share prices were DOWN 26 times over the past 46 quarters. So Historical price reaction suggests a 56% chance for the share price to go DOWN after the company releases its Q1 2022 earnings. According to Stockearning’s algorithm, the predicted first-day move is 4%, while the predicted stock movement in the seventh day following earnings release is 5%.
What analysts are saying
Jefferies analyst Brent Thill has raised the firm's target price for Oracle stock from $80 to $90 and maintains a "Hold" rating on the stock. Year to date, the stock has gained 39% as negative investor sentiment turns at the margin. However, expectations are moving higher.
Also, Barclays analyst Raimo Lenschow raised his price target on the stock from $83 to $85 and maintained a Hold rating on the stock ahead of the release of Q1 2022 earnings results.
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