Oracle Corporation (ORCL) PT Raised By Sterne Agee Ahead Of Q4 Earnings

OracleBy Sanatan2014 (Own work) [CC BY-SA 4.0], via Wikimedia Commons

Oracle Corporation (NYSE:ORCL) will report its fiscal fourth quarter results on Thursday, June 19, 2014 after the bell. Shares of the software giant have gained about 11% this year so far, which suggests that investors expect a strong Q4 and more robust outlook. Ahead of its Q4 earnings release, Oracle got a big boost on Monday when Sterne Agee analysts Robert Breza and Jean-Baptiste Jouve raised their price target from $40 to $41. The research firm still has a Neutral rating on the stock.

Oracle set to report solid Q4 results

Analysts polled by Thomson Reuters expect Oracle Corporation (NYSE:ORCL)’s Q4 earnings to rise 9.2% YoY to $0.95 per share. Revenues are expected to jump 4.8% to $11.48 billion. For the full-year 2014, Wall Street forecasts $38.44 billion in revenues and $2.91 in EPS. The company management guided Q4 revenue to be in the range of $11.29-$11.72 billion. Sterne Agee’s checks with resellers, partners and integrators point to a solid Q4. The research firm expects fourth quarter revenues to come in at $11.50 billion.


Breza and Jouve noted that the revenue growth will be driven by new software licenses, license updates and product support. Revenue upside, along with improved cost controls and a positive tax rate are likely to increase Oracle Corporation (NYSE:ORCL)’s earnings by 2-3 cents. Notably, RBC Capital Markets has also raised its price target on Oracle from $35 to $40 on Monday. RBC Capital has a Sector Perform rating on the stock.

Release of 12c In-Memory database should boost Oracle’s Q1 revenues

Q1 is seasonally the toughest quarter for the Redwood City-based software giant. But Sterne Agee expects Oracle Corporation (NYSE:ORCL) to provide strong first quarter outlook. The research firm says earlier than expected release of 12c In-Memory database should help the company’s top-line in the first quarter. Initial feedback about the 12c database release from the beta customers has been positive. Therefore, Sterne Agee expects massive new database orders as well as strong renewal of existing customers.

Sterne Agee expects Oracle Corporation (NYSE:ORCL)’s first quarter revenues to come in at $8.78 billion with 64 cents in EPS.

Oracle Corporation (NYSE:ORCL) shares were down 0.21% to $42.05 in pre-market trading Monday.

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Vikas Shukla
Vikas Shukla has a strong interest in business, finance, and technology. He writes regularly on these topics. - He can be contacted by email at [email protected]

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