Oracle (ORCL) Shares Jump on Q2 Results; Analysts Show the Love
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Price: $122.51 -1.37%
Rating Summary:
49 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 9 | New: 12
Rating Summary:
49 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 9 | New: 12
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Shares of Oracle Corp. (NASDAQ: ORCL) are up 5.52 percent to $31.94 in midday market movement on Friday after the company posted better-than-expected second-quarter results on Thursday.
Oracle reported second-quarter earnings of 51 cents per share, 5 cents better than the analyst estimate of 46 cents per share.
Revenue for the company rose 47 percent to $8.6 billion in the period, beating the market consensus of 48.34 billion. Software license revenue rose 21 percent to $2.0 billion.
Looking forward, the company sees third-quarter earnings in the range of 48 cents to 50 cents per share, ahead of the Street's view of 47 cents per share. Oracle also sees non-GAAP sales growth of 31-35 percent.
Analyst Round Up
Deutsche Bank maintains a Hold rating on Oracle, while raising its price target from $24 to $26.
Deutsche Bank analyst says, "We are impressed with Exadata’s performance benchmarking results and management commentary of strong early adoption. However, with a $2b sales funnel “pipeline” and a typical enterprise win ratio of 3:1, we believe that Exadata would be a <$700m/year product, which is a good showing, but still just a modest contributor to Oracle’s business. We also believe that the hardware business is a drag on the company’s overall revenue growth due to a niche addressable market size."
Wells Fargo maintains an Outperform rating on Oracle, while raising its valuation range from $31 to $33 up to a new range of $36 to $38.
Wells Fargo analyst says, "This quarter once again reinforced our thesis that ORCL's highly engineered systems strategy will take share of datacenter spending. We believe the convergence of software and hardware systems is an inevitable trend at the high end of the market. ORCL is well on its way to gaining more wallet share since they control the software workloads that drive the infrastructure decision."
Goldman Sachs maintains a Conviction List Buy rating, while raising its price target on the stock from $33 to $36.
Goldman Sachs analyst says, "Next major catalyst is February quarter results, reported in March. A generally much stronger second half of the fiscal year for Oracle (FYE is May) typically provides momentum for the stock, at a time when software overall can see some seasonal weakness."
Wedbush analyst says, "We believe these results paint a relatively bright picture for spending trends in infrastructure software. Strong growth in Oracle’s DB appliance has and should continue to help drive greater interest/awareness for data warehousing products, although ORCL’s fully integrated hardware/software Exadata product could become a more serious competitive threat to TDC over time."
Oracle reported second-quarter earnings of 51 cents per share, 5 cents better than the analyst estimate of 46 cents per share.
Revenue for the company rose 47 percent to $8.6 billion in the period, beating the market consensus of 48.34 billion. Software license revenue rose 21 percent to $2.0 billion.
Looking forward, the company sees third-quarter earnings in the range of 48 cents to 50 cents per share, ahead of the Street's view of 47 cents per share. Oracle also sees non-GAAP sales growth of 31-35 percent.
Analyst Round Up
Deutsche Bank maintains a Hold rating on Oracle, while raising its price target from $24 to $26.
Deutsche Bank analyst says, "We are impressed with Exadata’s performance benchmarking results and management commentary of strong early adoption. However, with a $2b sales funnel “pipeline” and a typical enterprise win ratio of 3:1, we believe that Exadata would be a <$700m/year product, which is a good showing, but still just a modest contributor to Oracle’s business. We also believe that the hardware business is a drag on the company’s overall revenue growth due to a niche addressable market size."
Wells Fargo maintains an Outperform rating on Oracle, while raising its valuation range from $31 to $33 up to a new range of $36 to $38.
Wells Fargo analyst says, "This quarter once again reinforced our thesis that ORCL's highly engineered systems strategy will take share of datacenter spending. We believe the convergence of software and hardware systems is an inevitable trend at the high end of the market. ORCL is well on its way to gaining more wallet share since they control the software workloads that drive the infrastructure decision."
Goldman Sachs maintains a Conviction List Buy rating, while raising its price target on the stock from $33 to $36.
Goldman Sachs analyst says, "Next major catalyst is February quarter results, reported in March. A generally much stronger second half of the fiscal year for Oracle (FYE is May) typically provides momentum for the stock, at a time when software overall can see some seasonal weakness."
Wedbush analyst says, "We believe these results paint a relatively bright picture for spending trends in infrastructure software. Strong growth in Oracle’s DB appliance has and should continue to help drive greater interest/awareness for data warehousing products, although ORCL’s fully integrated hardware/software Exadata product could become a more serious competitive threat to TDC over time."
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