Oracle Corporation (ORCL)

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Earnings Previews: Oracle
By: 24/7 Wall St. | December 8, 2021

Here’s a look at five more companies set to report results after markets close Thursday and before Friday’s opening bell.

Oracle

Software and cloud-computing giant Oracle Corp. (NYSE: ORCL) has added about 50% to its share price over the past 12 months, in the same neighborhood as Apple (up 42%) and Microsoft (up 56%). The company’s EBIT margin topped 41% in the prior quarter, and gross margin topped 80%. But net income slipped by $1 billion (around 20%) sequentially in the fiscal first quarter and EPS was down by a like amount. That kind of performance in the second quarter won’t lift investors’ spirits. Oracle reports fiscal 2022 second-quarter results later on Thursday.

Of 30 analysts covering the stock, just six have a Buy or Strong Buy rating on the shares, while 20 have a Hold rating. At a share price of around $88.10, the upside potential based on a median price target of $89 is barely 1%. At the high price target of $115, the upside potential is 30/5%.

Second-quarter fiscal 2022 revenue is forecast at $10.21 billion, up 4.9% sequentially and 3.8% year over year. Adjusted EPS are pegged at $1.11, up 8.2% sequentially and 4.7% year over year. For the full fiscal year ending in May, current estimates call for EPS of $4.69, up less than 1%, on sales of $42.18 billion, up 4.2%.

Oracle’s share price to earnings multiple for the 2022 fiscal year is 18.8. For fiscal 2023, the multiple to estimated EPS of $5.53 is 17.1, and for 2024, it is 15.7 times estimated EPS of $5.60. The stock’s 52-week range is $58.80 to $98.95. Oracle pays an annual dividend of $1.28 (yield of 1.44%). Total shareholder return for the past year was 51.5%.

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