Oracle (ORCL) Q3 'Not Great, but Getting Better' - Nomura's Sherlund

March 19, 2014 7:50 AM EDT
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Price: $39.10 -0.41%

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Nomura Securities analyst Rick Sherlund reiterated a Buy rating and $44 price target on Oracle (NASDAQ: ORCL) following Q3 results, which he said were "not great, but getting better."

Sherlund commented, "Oracle's Fs Q3 (Feb) was a bit light in revenue growth of 3.8% vs the Street at 4.3%. License growth was slower than our estimate while hardware finally turned the corner and is beginning to grow. EPS of $0.68 was up 7% in constant currency over last year and in line with our estimate, but below the Street at $0.70 due to a revaluation of assets and currencies in the economically troubled Venezuela. Hardware revenues grew about 3% on an organic cc basis. Software license updates and support was up 7% organic cc. We continue to look for 4% or so growth next year with faster 8%-10% EPS growth."

The firm moved FY14E EPS from $2.90 to $2.88; FY15E EPS from $3.21 to $3.18.

For an analyst ratings summary and ratings history on Oracle click here. For more ratings news on Oracle click here.

Shares of Oracle closed at $31.25 yesterday.

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