Oracle Earnings Preview
Barring any integration issues with the Sun Microsystems acquisition, Oracle should report a solid quarter. Oracle is scheduled to report their fiscal fourth quarter 2010 results after the market closes on Thursday, June 24.
Last quarter, Oracle reported earnings results just met Wall Street’s consensus estimates. ORCL shares fell 1.3% following the earnings release as investors were hoping for even a marginal earnings beat.
The current Wall Street consensus estimates are for revenues of $9.52 billion and EPS of $.54. This would imply a 38% jump in revenues over last year’s $6.88 billion. And a 17% growth in earnings over the $.46 per share earned in the previous year.
In 2010, Oracle’s shares have fallen 6% and have underperformed the 2% gain in the Nasdaq. Last year, ORCL shares gained 38%, but still underperformed the 44% gain in the Nasdaq.
Oracle stock is currently trading at 12x consensus 2011 EPS estimates. We expect a good, but not great quarter from Oracle. However, any apparent risks in integrating Sun Microsystems could derail the stock.