Key Results to Come for Oracle in FQ1 After Cerner Purchase


Oracle (NYSE:ORCL)

On Monday, September 12th, after the market closes, Oracle (NYSE:ORCL) will release the company’s earnings report for the first fiscal quarter.

The report will be the first released by the company after its acquisition of the medical records firm Cerner was finalized in June. It has also been claimed that the company has laid off hundreds of employees from its advertising and customer care departments during the previous three months.

According to Jonathan Weber, the following report from Oracle will include several one-time items due to the Cerner purchase. The performance of the shares has been somewhat in line with that of the overall market, even though they have lost 14% so far this year.

This time around, the purchase of Cerner is anticipated to “make a bit of noise around Oracle’s business sectors,” as stated by the analyst Brian White of Monness, Crespi, Hardt.

Meanwhile, the research firm Valuentum pointed out that despite ORCL’s debt burden being a “major risk,” the business has potential for dividend growth and shows promise.

The analyst forecasts that revenue from cloud and on-premise licenses will reach $1.24 billion, representing a year-over-year increase of 53%, while revenue from cloud services and licensing support will increase by 8% to reach $7.99 billion. It is anticipated that revenue from hardware will drop by 4% over the same period to $736 million, while service sales will climb by 93% year-over-year to $1.5 billion.

Oracle (ORCL) was the first company that John DiFucci, an analyst at Guggenheim, covered. He launched his coverage with a buy rating and a price target of $107 per share, indicating that he believes the Texas-based software giant might see “years of hypergrowth.”

The average analyst projection for earnings per share is now set at $1.08, an increase of 4.9% year-over-year. The average analyst projection for revenue is currently set at $11.45 billion, an increase of 17.7% year-over-year.

There has been one upward change to EPS projections over the last three months, while there have been 19 negative revisions. There have been 16 changes in the right direction for the revenue predictions and none in the wrong.

In the last two years, ORCL has been beating predictions for earnings per share (EPS) 88% of the time and revenue projections 63% of the time.

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