Oracle Corp to Post 2nd Quarter 2018 Figures

GuruFocus.com

- By Alberto Abaterusso

Oracle Corp. (ORCL) will release the results for the second quarter of fiscal 2018 Thursday, Dec. 14, after the New York Stock Exchange closes.

As reported by Yahoo Finance, 31 analysts were surveyed on Oracle"s EPS. These estimates range between a low of 67 cents and a high of 70 cents. The mean of the range is 68 cents, which represents a 7 cents rise from the prior-year quarter.


Twenty-nine analysts were surveyed with regard to revenue. These estimates range between a low of $9.46 billion and a high of $9.74 billion. The average is $9.57 billion, a 5.50% increase year over year.

The chart below illustrates the Redwood Shores" sales over the last five quarters. As you can see, even though sales went down slightly from the fourth quarter of fiscal 2017 to the first quarter of fiscal 2018, the drift is positive.

The chart below depicts Oracle"s sales over the last five fiscal years:

Oracle"s sales started to up-trend again in 2017 following a drop in 2016. For full fiscal 2018, analysts foresee 4.6% growth to $39.66 billion, while for full fiscal 2019 and for the following five-year period, they foresee 8.20% and 8.67% growth. The latter figure is a yearly average.

GuruFocus gives Oracle Corp. a profitability and growth rating of 7 out of 10.

On Dec. 14, the company will also provide shareholders with updated balance sheet figures. GuruFocus gives Oracle a financial strength rating of 6 out of 10.

Year to date the stock gained 31% to $49.60 per share on the New York Stock Exchange. The 52-week range is $38.30 to $53.14 per share.

Oracle is trading above the 50 and the 200-simple moving average lines:

As of Dec. 9, Oracle has a price-book (P/B) ratio of 3.76 versus an industry average of 3.13, a price-sales (P/S) ratio of 5.54 versus an industry average of 2.37 and a price-earnings (P/E) ratio of 22 versus an industry average of 26.92.

The market value of Oracle is the result of a total volume of 4.17 billion shares outstanding multiplied by the current share price of the stock.

Approximately 59.09% of the total volume of shares outstanding is held by institutions, of which the Vanguard Group Inc., Blackrock Inc. and State Street Corp. stand out with 210,919,120 (or 5.05%), 199,456,127 (or 4.78%) and 116,094,731 (or 2.78%) shares, respectively.

These holdings were, at Sept. 29, valued at $10,157,864,787; $9,605,807,045 and $5,591,122,227, respectively.

Oracle has a forward P/E ratio of 16.81. This is lower than its peers, which is 22.88. When the forward P/E ratio is multiplied by an EPS of $2.94, as forecasted by analysts for full fiscal 2018, it gives a value of $49.42 per share.

The average target price is $56.36 per share, and the recommendation rating is 2 out of a total of 5.

Disclosure: No positions in Oracle.

This article first appeared on GuruFocus.