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For first-quarter fiscal 2024, Oracle anticipates total revenue growth rate, including Cerner on a year-over-year basis, in the range of 8-10% at USD and 7-9% at constant currency (cc). The Zacks Consensus Estimate for revenues is pegged at $12.45 billion, indicating an increase of 8.82% on a year-over-year basis.
Oracle expects non-GAAP earnings per share growth rate on a year-over-year basis in the range of 8-12% at cc and $1.15-$1.15 per share in USD.
The Zacks Consensus Estimate for earnings has remained steady at $1.14 per share in the past 30 days, suggesting a 10.68% increase from the year-ago fiscal quarter’s reported figure.
Over the trailing four quarters, Oracle’s earnings beat the Zacks Consensus Estimate on three occasions and missed the mark once, with the average surprise being 1.76%.
Accelerated digital transformation, along with the continuation of remote work and mainstream adoption of the hybrid/flexible work model, is likely to have driven demand for Oracle Cloud Infrastructure (“OCI”) services and the company’s other cloud-based applications in the to-be-reported quarter.
The acquisition of Cerner in 2022, in an all-cash transaction amounting to $28.3 billion or $95 per share, is expected to have bolstered the company’s position in the lucrative healthcare domain. In the fourth quarter of fiscal 2023, Cerner contributed $1.5 billion to the total revenues driven by continued strength in the Fusion, Autonomous Database and OCI services.
For the fiscal first quarter of 2024, total cloud, including Cerner, is expected to grow from 28% to 30% at cc and from 29% to 31% in USD.
Continued momentum in back-office cloud-based Fusion Human Capital Management solutions, along with NetSuite Enterprise Resource Planning (ERP) and Fusion ERP applications, is expected to have favored ORCL’s quarterly performance.
The general availability of MySQL HeatWave Lakehouse is expected to have aided the company’s top line in the to-be-reported quarter. MySQL HeatWave Lakehouse enables customers to query data in object storage as fast as querying data inside the database.
Robust adoption of ORCL’s generative artificial intelligence (AI) services holds promise. In the to-be-reported quarter, the company was selected by MosaicML as the preferred cloud infrastructure partner to accelerate AI model training. Moreover, Oracle announced free training and certification program as demand for cloud and AI keeps accelerating.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Oracle this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Oracle currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Bowlero is scheduled to release fourth-quarter fiscal 2023 results on Sep 11. The Zacks Consensus Estimate for BOWL’s earnings per share is pegged at a penny.
Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +1.29% and currently carries a Zacks Rank #3.
Casey’s is set to report first-quarter fiscal 2024 results on Sep 11. The Zacks Consensus Estimate for CASY’s earnings is pegged at $3.36 per share.
Darden Restaurants (DRI - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank #2 at present.
Darden Restaurants is slated to report first-quarter fiscal 2024 results on Sep 21. The Zacks Consensus Estimate for DRI’s earnings is pegged at $1.72 per share.
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Oracle (ORCL) to Report Q1 Earnings: What's in the Cards?
Oracle (ORCL - Free Report) is scheduled to release first-quarter fiscal 2024 results on Sep 11, after market close.
For first-quarter fiscal 2024, Oracle anticipates total revenue growth rate, including Cerner on a year-over-year basis, in the range of 8-10% at USD and 7-9% at constant currency (cc). The Zacks Consensus Estimate for revenues is pegged at $12.45 billion, indicating an increase of 8.82% on a year-over-year basis.
Oracle expects non-GAAP earnings per share growth rate on a year-over-year basis in the range of 8-12% at cc and $1.15-$1.15 per share in USD.
The Zacks Consensus Estimate for earnings has remained steady at $1.14 per share in the past 30 days, suggesting a 10.68% increase from the year-ago fiscal quarter’s reported figure.
Over the trailing four quarters, Oracle’s earnings beat the Zacks Consensus Estimate on three occasions and missed the mark once, with the average surprise being 1.76%.
Oracle Corporation Price and EPS Surprise
Oracle Corporation price-eps-surprise | Oracle Corporation Quote
Factors to Consider
Accelerated digital transformation, along with the continuation of remote work and mainstream adoption of the hybrid/flexible work model, is likely to have driven demand for Oracle Cloud Infrastructure (“OCI”) services and the company’s other cloud-based applications in the to-be-reported quarter.
The acquisition of Cerner in 2022, in an all-cash transaction amounting to $28.3 billion or $95 per share, is expected to have bolstered the company’s position in the lucrative healthcare domain. In the fourth quarter of fiscal 2023, Cerner contributed $1.5 billion to the total revenues driven by continued strength in the Fusion, Autonomous Database and OCI services.
For the fiscal first quarter of 2024, total cloud, including Cerner, is expected to grow from 28% to 30% at cc and from 29% to 31% in USD.
Continued momentum in back-office cloud-based Fusion Human Capital Management solutions, along with NetSuite Enterprise Resource Planning (ERP) and Fusion ERP applications, is expected to have favored ORCL’s quarterly performance.
The general availability of MySQL HeatWave Lakehouse is expected to have aided the company’s top line in the to-be-reported quarter. MySQL HeatWave Lakehouse enables customers to query data in object storage as fast as querying data inside the database.
Robust adoption of ORCL’s generative artificial intelligence (AI) services holds promise. In the to-be-reported quarter, the company was selected by MosaicML as the preferred cloud infrastructure partner to accelerate AI model training. Moreover, Oracle announced free training and certification program as demand for cloud and AI keeps accelerating.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Oracle this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Oracle currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Bowlero (BOWL - Free Report) has an Earnings ESP of +211.12% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bowlero is scheduled to release fourth-quarter fiscal 2023 results on Sep 11. The Zacks Consensus Estimate for BOWL’s earnings per share is pegged at a penny.
Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +1.29% and currently carries a Zacks Rank #3.
Casey’s is set to report first-quarter fiscal 2024 results on Sep 11. The Zacks Consensus Estimate for CASY’s earnings is pegged at $3.36 per share.
Darden Restaurants (DRI - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank #2 at present.
Darden Restaurants is slated to report first-quarter fiscal 2024 results on Sep 21. The Zacks Consensus Estimate for DRI’s earnings is pegged at $1.72 per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.