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Oracle Second Quarter Earnings Preview
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ORCL
Oracle (Nasdaq:ORCL) is scheduled to announce its second quarter earnings on Tuesday, December 18, 2012.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Surprising Earnings Results
What to Expect: The consensus estimate for Oracle's earnings is 58 cents per share, up 9.4% from a year ago when the company reported earnings of 53 cents per share.
The consensus estimate is down from 59 cents three months ago, but it hasn't changed in the last month. For the fiscal year, analysts are projecting earnings of $2.53 per share.
Revenue is expected to exceed last year's figure of $8.79 billion by 2.7% and come in at $9.03 billion for the quarter. Revenue for the fiscal year is expected to come in at $38.29 billion.
Company Performance: Oracle reported a year-over-year decline in revenue in the first quarter, ending a three-quarter growth streak. It fell 2.3% in the first quarter after rising 1.3%in the fourth quarter of the last fiscal year, 3.1% in the third quarter of the last fiscal year and 2.4% in the second quarter of the last fiscal year.
ORCL has a P/E ratio of 16.1. The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Profit With The Power Of Price-To-Earnings
The stock price has fallen 3.1% to $31.94 from $32.95 since September 14, 2012. Oracle's best recent streak was when its price gained $2.80 per share between November 14, 2012 and December 4, 2012.
The Competition: Oracle develops, manufactures, markets, distributes, and services software designed to help its customers manage and grow their businesses. Analysts are optimistic about Oracle, with 20 of 34 assigning it a buy rating. In the last three months, the number of buy ratings has increased slightly.
The company's closest competitor in the software and programming industry is Microsoft (MSFT). Analysts are more optimistic about Oracle than about Microsoft. Only 20 out of 28 analysts rate the latter a buy.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Surprising Earnings Results
What to Expect: The consensus estimate for Oracle's earnings is 58 cents per share, up 9.4% from a year ago when the company reported earnings of 53 cents per share.
The consensus estimate is down from 59 cents three months ago, but it hasn't changed in the last month. For the fiscal year, analysts are projecting earnings of $2.53 per share.
Revenue is expected to exceed last year's figure of $8.79 billion by 2.7% and come in at $9.03 billion for the quarter. Revenue for the fiscal year is expected to come in at $38.29 billion.
Company Performance: Oracle reported a year-over-year decline in revenue in the first quarter, ending a three-quarter growth streak. It fell 2.3% in the first quarter after rising 1.3%in the fourth quarter of the last fiscal year, 3.1% in the third quarter of the last fiscal year and 2.4% in the second quarter of the last fiscal year.
The stock price has fallen 3.1% to $31.94 from $32.95 since September 14, 2012. Oracle's best recent streak was when its price gained $2.80 per share between November 14, 2012 and December 4, 2012.
The Competition: Oracle develops, manufactures, markets, distributes, and services software designed to help its customers manage and grow their businesses. Analysts are optimistic about Oracle, with 20 of 34 assigning it a buy rating. In the last three months, the number of buy ratings has increased slightly.
The company's closest competitor in the software and programming industry is Microsoft (MSFT). Analysts are more optimistic about Oracle than about Microsoft. Only 20 out of 28 analysts rate the latter a buy.
by
Investopedia Staff
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