Oracle Q1 Earnings: What’s ahead?

Earnings

Oracle (NYSE:ORCL)

Oracle (NYSE:ORCL) will disclose fiscal 2023 first-quarter data on Sep 12.

Oracle (NYSE:ORCL) expects first-quarter fiscal 2023 revenue growth of 17-19% USD and 20-22% cc. Zacks Consensus Revenue Estimate is $11.47 billion, up 17.8% year-over-year.

Oracle (NYSE:ORCL) expects an EPS increase of 6-10% at cc. Expected earnings are $1.09-$1.13 per share. First-quarter non-GAAP EPS is estimated to climb 1% to 5% to $1.04-$1.08.

The Zacks Consensus Estimate for earnings has been stable at $1.07 per share for the past 30 days, showing a 3.8% year-over-year increase.

Oracle’s earnings topped the Zacks Consensus Estimate three times and missed once, averaging 5.84%.

Oracle (NYSE:ORCL) completed its $28.3 billion all-cash acquisition of Cerner on June 7. Oracle’s most significant acquisition will enhance its position in the lucrative healthcare sector.

Considerations

Accelerated digital transformation, remote work, and mainstream adoption of the hybrid/flexible work model likely drove demand for Oracle Cloud Infrastructure (“OCI”) services and other cloud-based applications in the to-be-reported quarter.

Total cloud, excluding Cerner, is predicted to expand 25% to 28% in constant currency and 22% to 25% in USD in Q1 2023.

Oracle (NYSE:ORCL) quarterly performance was likely boosted by cloud-based Fusion HCM, NetSuite ERP, and Fusion ERP solutions.

Oracle’s Cloud services and license support sales climbed 3% year over year (up 7% at cc) to $7.61 billion in the last reported quarter. Fusion, Autonomous Database, and Oracle Cloud Infrastructure (“OCI”) drove growth.

Several significant SAP clients migrating to Oracle Fusion ERP cloud and growing contract wins in banking and healthcare may have helped the company’s ERP business.

Fusion ERP and NetSuite ERP grew 23% and 30% in Q4 2022.

Oracle’s next-generation autonomous database and Oracle Dedicated Region Cloud may have helped the top line. Gen2 public cloud autonomous database has gained traction.

This Zacks #2 (Buy) company’s Multiple-VM Autonomous Database on Oracle Exadata [email protected] service is popular with on-premises clients. Multiple-VM Autonomous Database lets businesses deploy isolated, highly available Autonomous Database instances on Exadata [email protected] systems running non-autonomous Oracle Databases. See today’s Zacks #1 Rank (Strong Buy) stocks here.

Oracle’s cooperation with VMware for Oracle Cloud VMware Solution is growing in popularity, which should help client growth in the upcoming quarter. The solution is popular among retailers, telecom companies, banks, manufacturers, and governments.

Oracle Fusion Cloud Supply Chain & Manufacturing’s strength, combined with new features that stimulate creativity and better decision-making, will likely boost revenue in the upcoming quarter.

Higher product development costs, notably cloud platform investments, may have hurt first-quarter performance. Amazon Web Services, Azure platform, and Google Cloud may constrain margin increase.

Q1 Summary

Oracle renewed a strategic relationship with AT&T (T) to add capacity and capabilities to the company’s Oracle Cloud database and application workloads. The new five-year arrangement expands AT&T’s use of Oracle Fusion Cloud ERP, CX, OCl, and other Oracle Cloud services.

Oracle (NYSE:ORCL) Database Service for Microsoft (MSFT) was released on July 20.

Azure (MSFT) Microsoft Azure users can provision, access, and monitor enterprise-grade Oracle Database services in OCI. Users can migrate or construct new applications on Azure and connect to high-performance, high-availability Oracle Database services like Autonomous Database on OCI.

Oracle’s NetSuite launched NetSuite Smart Count, an inventory counting solution that automates inventory counts and allows them to be completed live without blocking transactions, minimizing the impact on operations.

Oracle Construction Intelligence Cloud Analytics is a new service that combines data from Oracle Smart Construction Platform apps to give owners and contractors a comprehensive picture of performance.

Oracle and Claro established a partnership on July 14 to offer OCI services in Colombia. Claro will host an Oracle Cloud region in Colombia, allowing it to offer OCI platform services and professional and managed services to help customers embrace cloud solutions.

Oracle opened its first OCI region in Mexico on June 30, becoming the country’s first significant cloud provider.

Featured Image – Megapixl © Garinanton

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About the author: I'm a financial journalist with more than 1.5 years of experience. I worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan. I love to write about marketing and finance. Other than that, I like spending time in the gym and playing PC games.