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Here's What to Expect Ahead of Oracle's (ORCL) Q4 Earnings

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Oracle (ORCL - Free Report) is scheduled to release fourth-quarter fiscal 2021 results on Jun 15.

Oracle expects non-GAAP earnings per share between $1.28 and $1.32 at USD, and $1.20 and $1.24 at constant currency. The Zacks Consensus Estimate for earnings has been stable in the past 30 days at $1.31, suggesting growth of 9.2% from the year-ago quarter’s reported figure.

For fourth-quarter fiscal 2021, Oracle anticipates total revenue growth rate on a year-over-year basis in the range of 5-7% at USD and 1-3% at constant currency. The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $11.07 billion, indicating growth of 6% on a year-over-year basis.

The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of 5.98%, on average.

Oracle Corporation Price and EPS Surprise

 

Oracle Corporation Price and EPS Surprise

Oracle Corporation price-eps-surprise | Oracle Corporation Quote

 

Factors Likely to Have Influenced Q4 Performance

Oracle’s fiscal fourth-quarter results are likely to reflect gains rapid uptake of Oracle Cloud Infrastructure (OCI) services as well as other cloud-based applications amid continuation of remote work and online learning set up.

Continued momentum in adoption of back-office cloud-based Fusion Human Capital Management (HCM) solutions along with NetSuite Enterprise Resource Planning (ERP) and Fusion ERP applications is expected to have positively impacted performance in fiscal fourth quarter. Notably, Fusion HCM, NetSuite ERP and Fusion ERP businesses were up 21%, 22% and 27%, respectively, in the fiscal third quarter.

In April 2021, Oracle rolled out Oracle Journeys within its Oracle Fusion HCM platform. Oracle Journeys solution is designed to help enterprises assist their employees in navigating through diverse life events like onboarding, having a baby, growth in career, as well as safe return to workplace and boost employee experience.

Notably, the migration of several large-scale SAP (SAP - Free Report) clients to Oracle Fusion ERP cloud may have acted as a tailwind.

Also, increasing customer acquisitions including independent software vendors (ISVs) is also like to have positively contributed to the top line performance.

The company’s Exadata Cloud Service offering is also likely to have witnessed healthy adoption due to surge in demand from on-premise customers. This may get reflected in fiscal fourth-quarter revenues.

Moreover, strength in Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) solution, integrated with new capabilities that help companies foster innovation and improve decision making, is expected to contribute to top-line growth in the about-to-be-reported quarter.

Increasing clout of its next-generation autonomous database and Oracle Dedicated Region Cloud, supported by machine learning (ML) and Artificial Intelligence (AI) capabilities, might have benefited fiscal fourth-quarter performance. Autonomous database in Gen2 public cloud infrastructure is witnessing steady traction.

Nonetheless, higher expenses on product development and sluggishness in IT spending, might have weighed on the fiscal fourth-quarter performance.

Stiff competition in the cloud computing market from the likes of Amazon’s (AMZN - Free Report) Amazon Web Services (“AWS”) and Microsoft’s (MSFT - Free Report) Azure platform might have also limited margin expansion in the about-to-be-reported quarter for this Zacks Rank #3 (Hold) company.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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