Aiming for Growth Amidst Challenges
Anticipation is building as Oracle (NYSE:ORCL) prepares to unveil its third-quarter earnings report on Monday, March 11th, following the close of the market.
Market analysts are predicting a rise in both revenue and profits year-over-year, forecasting earnings per share to reach $1.38 on revenues totaling $13.3 billion.
The road to Oracle’s third-quarter results has been bumpy, with mixed sentiments swirling around the company’s performance, especially after a lackluster first half of the fiscal year.
Navigating Choppy Waters
Experts at Guggenheim are wary that Oracle (ORCL) may face challenges meeting third-quarter projections in light of a difficult macroeconomic environment and the substantial business growth required to align with consensus estimates.
In a contrasting viewpoint, Jefferies finds it improbable for Oracle to miss three consecutive quarters, expressing confidence in the achievability of the third-quarter targets.
Barclays brokerage points out that Q3 typically represents a modest portion of Oracle’s operations, suggesting limited opportunities for substantial overperformance in its key segments.
Tracking Investment in Infrastructure
Investors are keenly observing Oracle’s capital expenditure as the company expands its data center capabilities to cater to the escalating demand for Oracle Cloud Infrastructure, fueled by robust AI bookings.
Recent months have witnessed significant alterations to Oracle’s estimates, with earnings per share estimates being raised 12 times juxtaposed against 10 downward revisions. Revenue estimates have seen five upward revisions and 14 downgrades.
Within the analyst community, ORCL is perceived as a Hold by Seeking Alpha, contrasting with the Buy ratings from Wall Street and SA Quant.