Can Oracle Beat These Numbers?

Seth Jayson, The Motley Fool
Updated

Oracle (NAS: ORCL) is expected to report Q4 earnings on June 20. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Oracle's revenues will expand 1.1% and EPS will expand 7.3%.

The average estimate for revenue is $11.12 billion. On the bottom line, the average EPS estimate is $0.88.


Revenue details
 Last quarter, Oracle booked revenue of $8.97 billion. GAAP reported sales were 0.9% lower than the prior-year quarter's $9.04 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, non-GAAP EPS came in at $0.65. GAAP EPS of $0.52 for Q3 were 6.1% higher than the prior-year quarter's $0.49 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 80.8%, 190 basis points better than the prior-year quarter. Operating margin was 38.0%, 20 basis points better than the prior-year quarter. Net margin was 28.0%, 40 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $37.43 billion. The average EPS estimate is $2.69.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,482 members out of 3,697 rating the stock outperform, and 215 members rating it underperform. Among 807 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 770 give Oracle a green thumbs-up, and 37 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oracle is outperform, with an average price target of $37.55.

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The article Can Oracle Beat These Numbers? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Oracle. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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