Oracle Corporation (NYSE:ORCL) will report its first-quarter 2015 earnings in a conference call on September 18. The company has not performed very well in terms of earnings over the past several quarters, and the will not change in the upcoming quarter results as well, believe Cantor Fitzgerald analyst Brian J. White in a report dated September 16, 2014.

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Analyst expects potential upside

“Trading at just under 12x our CY:15 EPS estimate, with an operating margin profile that is 1.5-2x other leading IT vendors, the stock, in our view, has attractive upside potential over the next year as reflected in our $50.00 price target,” notes White.

Analyst expects Oracle will marginally miss the first-quarter 2015 revenue estimates of $8.79 billion (and consensus is at $8.77 billion) and perform in line with the EPS projection of $0.64 (Street also

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expects $0.64). Revenue is expected to drop 22% quarter on quarter, but would be marginally better than the seven-year average drop of 24%.

4Q numbers and Q1 guidance

In the fourth-quarter of 2014, the company performed weaker than expected missing on sales as well as earnings. Revenue for the company came in at $11.3 billion compared to the consensus estimate of $11.5 billion and Non-GAAP Earnings per share of $0.92 compared to the consensus estimate of $0.95.

Oracle has given revenue growth guidance between 4% and 6% year to year. On average analysts are estimating first-quarter 2015 revenue at $8.77 billion, an increase of 4.7% year over year. Non-GAAP Earnings per share is expected to range $0.62-$0.66, against a consensus estimate of $0.64.

Factors in favor and against of Oracle

New license sales are losing their sheen for quite primarily due to the rising interest of on-demand software adoption. The trend would affect the new license sales for companies like Oracle, SAP, Microsoft and IBM, in the future, says a report from the Forbes. Additionally, the company has failed to match the subscription sales of Salesforce and SAP on a year over year basis. Overall, SaaS sales growth of Oracle dropped due to a weak performance from its IaaS product offering.

Since past we years, Oracle has developed its broad range of engineered systems that run on a Unix-based SPARC architecture. Oracle has closed Open Solaris project after acquiring SUN Microsystem, and returned Solaris to its core as the most fully featured of the Unix-based operating system. These measures along with other initiatives are expected to stabilize and improve the hardware products division of Oracle.

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