Tomorrow (3/15) after the market close, Oracle (NYSE: ORCL) is scheduled to report 3Q:FY16 and Drexel Hamilton analyst, Brian White, is expecting an in-line quarter. No change to Buy rating or $46 PT.

The analyst expects Oracle to slightly miss the 3Q:FY16 revenue estimate of $9.13 billion) but at least meet his EPS projection of $0.61 (Street is at $0.62). Revenue estimates for 3Q:FY16 represent less than a 1% QoQ increase and slightly below the average increase of 2% over the past six years. Recall, Oracle's 3Q:FY16, outlook calls for non- GAAP sales to be up 0% to 3% YoY in CC and pro forma EPS in CC to be $0.63-0.66 (with a $0.03 impact from FX).

Oracle's progress in the cloud and the IT spending environment to be a major focus on tomorrow's earnings call. Recent IT reports have highlighted slowing demand trends at the end of January and they expect Oracle to voice similar trends. More importantly, they are very encouraged by Oracle's progress in the cloud over the past 12-18 months and expect the momentum to continue on tomorrow's call. Recall, Oracle expects to book over $1.5 billion in SaaS/PaaS ARR in FY:16 and to deliver its first quarter of SaaS/PaaS revenue of $1 billion sometime in FY:17.

Looking into 4Q:FY16, they are modeling sales of $10.41 billion (Street is at $10.68 billion) and EPS of $0.80 (Street is at $0.82). Given the volatile macro backdrop and spending slowdown at other IT vendors at the end of January, they believe Oracle will highlight this in its outlook

The conference call will begin at 5:00pm ET; dial-in is 816-287-5563 (passcode: 425392).

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Shares of Oracle closed at $38.95 yesterday.