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Oracle's (ORCL) Q4 Earnings: Cloud Offerings in Spotlight
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Oracle (ORCL - Free Report) is set to report fourth-quarter fiscal 2021 results on Jun 15.
The company’s fiscal fourth-quarter results are anticipated to have benefited from strength in its Oracle Cloud Infrastructure (OCI) services as well as other cloud-based applications and Autonomous Database solution.
Nonetheless, higher investments on product development and platform to retain its competitive stance against the likes of dominant cloud players like Amazon’s (AMZN - Free Report) Amazon Web Services, Microsoft's (MSFT - Free Report) Azure and Alphabet's (GOOGL - Free Report) Google Cloud is likely to have affected profitability in the to-be-reported quarter.
Click here to know how the company’s overall fiscal fourth-quarter performance is expected to be.
Oracle is also witnessing continued momentum in adoption of its cloud-based solutions, especially NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM). This is likely to have aided revenue growth in the fiscal fourth quarter.
In the third quarter of fiscal 2021, Oracle’s Fusion HCM, NetSuite ERP and Fusion ERP businesses reported revenue increases of 21%, 22% and 27%, respectively.
In April 2021, Oracle announced that the company’s Cloud Infrastructure services/resources could be accessed and handled by enterprise clients through their ServiceNow’s IT Operations Management (ITOM) Visibility application and ServiceNow’s service portal.
The Zacks Consensus Estimate for Cloud services and license support revenues is pegged at $7.332 billion, indicating an improvement of 7.1% on a year-over-year basis.
Healthy uptake of Exadata cloud solutions, and Autonomous Database offerings coupled with robust demand for the Oracle Dedicated Region Cloud@Customer is likely to have driven the top line.
Moreover, increased availability of Oracle cloud regions globally is expected to have strengthened its competitive position in the cloud computing market. In May 2021, the company launched its second cloud region in Brazil namely Vinhedo Cloud region, marking the 30th cloud region in the world.
Notably, the consensus for Cloud license and on-premise license is pegged at $2.082 billion, indicating an improvement of 6.3% on a year-over-year basis.
Weak IT Spend A Concern
Weakness in IT spending across small- and medium-sized businesses owing to pandemic-induced economic downturn are likely to have affected fiscal fourth-quarter performance.
Markedly, the Zacks Consensus Estimate for Hardware revenues in the fiscal fourth quarter is pegged at $886 million, suggesting a drop of 1.7% on a year-over-year basis. Meanwhile, the consensus mark for Services revenues stands at $726 million, indicating a decline of 1.2% on a year-over-year basis.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
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Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
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Oracle's (ORCL) Q4 Earnings: Cloud Offerings in Spotlight
Oracle (ORCL - Free Report) is set to report fourth-quarter fiscal 2021 results on Jun 15.
The company’s fiscal fourth-quarter results are anticipated to have benefited from strength in its Oracle Cloud Infrastructure (OCI) services as well as other cloud-based applications and Autonomous Database solution.
Nonetheless, higher investments on product development and platform to retain its competitive stance against the likes of dominant cloud players like Amazon’s (AMZN - Free Report) Amazon Web Services, Microsoft's (MSFT - Free Report) Azure and Alphabet's (GOOGL - Free Report) Google Cloud is likely to have affected profitability in the to-be-reported quarter.
Click here to know how the company’s overall fiscal fourth-quarter performance is expected to be.
Oracle Corporation Revenue (Quarterly)
Oracle Corporation revenue-quarterly | Oracle Corporation Quote
Solid Uptake of Cloud Solutions Augur Well
Oracle is also witnessing continued momentum in adoption of its cloud-based solutions, especially NetSuite Enterprise Resource Planning (ERP), Fusion ERP and Fusion Human Capital Management (HCM). This is likely to have aided revenue growth in the fiscal fourth quarter.
In the third quarter of fiscal 2021, Oracle’s Fusion HCM, NetSuite ERP and Fusion ERP businesses reported revenue increases of 21%, 22% and 27%, respectively.
In April 2021, Oracle announced that the company’s Cloud Infrastructure services/resources could be accessed and handled by enterprise clients through their ServiceNow’s IT Operations Management (ITOM) Visibility application and ServiceNow’s service portal.
The Zacks Consensus Estimate for Cloud services and license support revenues is pegged at $7.332 billion, indicating an improvement of 7.1% on a year-over-year basis.
Healthy uptake of Exadata cloud solutions, and Autonomous Database offerings coupled with robust demand for the Oracle Dedicated Region Cloud@Customer is likely to have driven the top line.
Moreover, increased availability of Oracle cloud regions globally is expected to have strengthened its competitive position in the cloud computing market. In May 2021, the company launched its second cloud region in Brazil namely Vinhedo Cloud region, marking the 30th cloud region in the world.
Notably, the consensus for Cloud license and on-premise license is pegged at $2.082 billion, indicating an improvement of 6.3% on a year-over-year basis.
Weak IT Spend A Concern
Weakness in IT spending across small- and medium-sized businesses owing to pandemic-induced economic downturn are likely to have affected fiscal fourth-quarter performance.
Markedly, the Zacks Consensus Estimate for Hardware revenues in the fiscal fourth quarter is pegged at $886 million, suggesting a drop of 1.7% on a year-over-year basis. Meanwhile, the consensus mark for Services revenues stands at $726 million, indicating a decline of 1.2% on a year-over-year basis.
At present, Oracle carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>