We're not really expecting much of a breakout in the
) Q1 (fiscal 2014) earnings report, which was just released after
the bell today. The legacy hardware and software provider posted
quarterly earnings of 56 cents per share (non-GAAP, excluding
amortization and restructuring) on revenues of $8.38 billion.
This was a 3-cent beat on the bottom line, but fell short of the
Zacks Consensus $8464 million on the top line.
But with the Fed surprising most everyone in the markets today by
not beginning to taper quantitative easing (QE), there's little
impact Oracle's earnings are likely to have. First, mixed reports
usually cause a stock to stay somewhat range-bound near-term, and
secondly, Oracle's days as a tech behemoth are a bit in the
rearview these days, as cloud computing has taken large bites out
of the "old-style" legacy tech firms over the past few years.
Besides, it doesn't look like Oracle's CEO Larry Ellison's really
sweating Q1 earnings too much this afternoon; he's right now
getting ready to defend his yacht club's America's Cup win from
last year. To quote Mel Brooks: "It's good to be da king!"
Anyway, as per normal, analysts covering Oracle have been holding
estimates steady over the past quarter. So steady, in fact, that
zero estimate revisions have been made by any of the ten analysts
following Oracle in the past three months. This quarter's 5.66%
positive surprise may not look so huge, but it's the biggest
surprise either way in the past 5 quarters. In short, Oracle
doesn't seem to present many conundrums (conundra?) for analysts
For the company itself, however, it might be a slightly different
story. Hardware revenues have been tough sledding, and they
missed expectations in Q1. New software licenses were up 4%, and
operating margins were a better-than-expected 45%, but ultimately
it's going to come down to migrating from legacy systems to cloud
computing (Software-as-a-Service, etc.), and how deftly they can
fully implement their new business model relative to its
Obviously, the change won't happen overnight. Heck, even the
America's Cup races take longer than a week.
ORACLE CORP (ORCL): Free Stock Analysis
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