Oracle Corp (
is set to report fiscal second-quarter 2014 results on Dec 18. In
the prior quarter, the company reported a positive surprise of
5.66%. Moreover, Oracle posted an average positive earnings
surprise of 2.52% over the past four quarters.
Let us see how things are shaping up for the company in this
Growth Factors this Past Quarter
Oracle's second-quarter guidance was cautious due to tough
year-over-year comparisons and lack of visibility surrounding the
closure of corporate deals.
Management's forecast for new software license and cloud
subscription revenues were to grow in the range of (6.0%) to
4.0%. Hardware product revenues were expected to decline in the
range of 11.0% to 1.0%.
Amid slowing IT spending, soft demand environment and sluggish
hardware sales, we believe that a rise in new software license
and cloud revenues will be positives for Oracle. However, a
decline will reflect market share loss to IBM, Cisco, Workday and
Our proven model does not conclusively show that Oracle is likely
to beat earnings this quarter. That is because a stock needs to
have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
: That is because both the Most Accurate estimate and the Zacks
Consensus Estimate stand at 64 cents. Hence, the difference is of
Zacks Rank #3
: Oracle's Zacks Rank #3 when combined with an ESP of 0.0% makes
surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated
stocks) going into the earnings announcement.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat in the upcoming quarter.
Winnebago Industries (
, with Earnings ESP of +10.26% and a Zacks Rank #1 (Strong Buy).
APOGEE ENTRPRS (APOG): Free Stock Analysis
ORACLE CORP (ORCL): Free Stock Analysis
WINNEBAGO (WGO): Free Stock Analysis Report
WORTHINGTON IND (WOR): Free Stock Analysis
To read this article on Zacks.com click here.
Apogee Enterprises (
, with Earnings ESP of +3.03% and a Zacks Rank #2 (Buy).
Worthington Industries (
, with Earnings ESP of +3.57% and a Zacks Rank #2 (Buy).