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Oracle's (ORCL) Q1 Earnings Coming Up: What's in Store?
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Oracle (ORCL - Free Report) is scheduled to release first-quarter fiscal 2023 results on Sep 12, after market close.
For first-quarter fiscal 2023, Oracle anticipates total revenue growth rate, on a year-over-year basis, in the range of 17-19% at USD and 20-22% at cc. The Zacks Consensus Estimate for revenues is pegged at $11.47 billion, indicating an increase of 17.8% on a year-over-year basis.
Oracle expects non-GAAP earnings per share (“EPS”) growth rate on a year-over-year basis in the range of 6-10% at cc. Earnings are expected in the band of $1.09-$1.13 per share. The non-GAAP EPS for the first quarter is expected to grow between 1% and 5% and be in the range of $1.04-$1.08.
The Zacks Consensus Estimate for earnings has remained steady at $1.07 per share in the past 30 days, suggesting growth of 3.88% from the year-ago quarter’s reported figure.
Over the trailing four quarters, Oracle’s earnings beat the Zacks Consensus Estimate on three occasions and missed on one, with the average surprise being 5.84%.
On Jun 7, Oracle announced the completion of the acquisition of Cerner in an all-cash transaction amounting to $28.3 billion or $95 per share. The acquisition, the biggest ever for Oracle, is expected to bolster the company’s position in the lucrative healthcare domain.
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.
For the first quarter of fiscal 2023, total cloud, excluding Cerner, is expected to grow from 25% to 28% in constant currency and from 22% to 25% in USD.
Continued momentum in 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 favored ORCL’s quarterly performance.
In the last reported quarter, Oracle’s Cloud services and license support revenues (64% of total revenues) increased 3% year over year (up 7% at cc) to $7.61 billion. The upside was driven by continued strength in the Fusion, Autonomous Database and Oracle Cloud Infrastructure (“OCI”) services.
The migration of several large-scale SAP clients to Oracle Fusion ERP cloud and increasing deal wins in several verticals, especially banking and healthcare, might have acted as tailwinds for the company’s ERP business.
Fusion ERP and NetSuite ERP were up 23% and 30%, respectively, in the fourth quarter of fiscal 2022.
The robust adoption of Oracle’s next-generation autonomous database and Oracle Dedicated Region Cloud, supported by machine learning (ML) and Artificial Intelligence (AI) capabilities, might have benefited the top line. Autonomous database in Gen2 public cloud infrastructure has been witnessing healthy traction.
This Zacks Rank #2 (Buy) company’s latest Multiple-VM Autonomous Database on Oracle Exadata Cloud@Customer service offering has been gaining considerable traction among on-premises clients. Multiple-VM Autonomous Database enables organizations to create and run isolated, highly available Autonomous Database instances on Exadata Cloud@Customer systems that are also running non-autonomous Oracle Databases. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oracle’s partnership with VMware for Oracle Cloud VMware Solution has been gaining prominence, which is expected to have aided customer growth in the to-be-reported quarter. The solution has gained popularity among leading enterprises in retail, telecommunication, finance and banking, manufacturing, government and others.
Strength in the Oracle Fusion Cloud Supply Chain & Manufacturing solution, integrated with new capabilities that help companies foster innovation and improve decision making, is expected to have contributed to the top line in the to-be-reported quarter.
Higher expenses on product development, especially increased investment toward cloud platform, might have dented fiscal first-quarter performance. Intense competition in the cloud computing market from the likes of Amazon Web Services, Azure platform and Google Cloud might have limited margin expansion.
Q1 Highlights
Oracle announced that it has renewed a strategic agreement with AT&T (T - Free Report) that will help give new capacity and capabilities for the company’s database and application workloads running in Oracle Cloud. The new five-year deal will build on AT&T’s use of Oracle Fusion Cloud ERP, Oracle Fusion Cloud Customer Experience (CX), OCl and other Oracle Cloud services.
On Jul 20, Oracle announced the general availability of Oracle Database Service for Microsoft’s (MSFT - Free Report) Azure. With this new offering, Microsoft Azure customers can easily provision, access, and monitor enterprise-grade Oracle Database services in OCI with a familiar experience. Users can migrate or build new applications on Azure and then connect to high-performance and high-availability managed Oracle Database services such as Autonomous Database running on OCI.
Oracle’s NetSuite announced the launch of NetSuite Smart Count, an inventory counting solution that enables organizations to improve the efficiency and accuracy of inventory management by automating inventory count and enabling them to be conducted live without freezing transactions, minimizing the impact on operations.
Moreover, Oracle rolled out Oracle Construction Intelligence Cloud Analytics, a new solution that combines data from Oracle Smart Construction Platform applications to give owners and contractors a comprehensive understanding of performance throughout their operations.
On Jul 14, Oracle announced a partnership with Claro to jointly offer OCI services to public and private sector organizations and enterprises in Colombia. Claro will become the host partner for an Oracle Cloud region in Colombia, which will enable it to offer OCI platform services along with professional and managed services to help customers adopt cloud solutions.
On Jun 30, Oracle announced the opening of the first OCI region in Mexico, thus becoming the first major cloud provider to establish a dedicated cloud region in the country.
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Oracle's (ORCL) Q1 Earnings Coming Up: What's in Store?
Oracle (ORCL - Free Report) is scheduled to release first-quarter fiscal 2023 results on Sep 12, after market close.
For first-quarter fiscal 2023, Oracle anticipates total revenue growth rate, on a year-over-year basis, in the range of 17-19% at USD and 20-22% at cc. The Zacks Consensus Estimate for revenues is pegged at $11.47 billion, indicating an increase of 17.8% on a year-over-year basis.
Oracle expects non-GAAP earnings per share (“EPS”) growth rate on a year-over-year basis in the range of 6-10% at cc. Earnings are expected in the band of $1.09-$1.13 per share. The non-GAAP EPS for the first quarter is expected to grow between 1% and 5% and be in the range of $1.04-$1.08.
The Zacks Consensus Estimate for earnings has remained steady at $1.07 per share in the past 30 days, suggesting growth of 3.88% from the year-ago quarter’s reported figure.
Over the trailing four quarters, Oracle’s earnings beat the Zacks Consensus Estimate on three occasions and missed on one, with the average surprise being 5.84%.
On Jun 7, Oracle announced the completion of the acquisition of Cerner in an all-cash transaction amounting to $28.3 billion or $95 per share. The acquisition, the biggest ever for Oracle, is expected to bolster the company’s position in the lucrative healthcare domain.
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.
For the first quarter of fiscal 2023, total cloud, excluding Cerner, is expected to grow from 25% to 28% in constant currency and from 22% to 25% in USD.
Continued momentum in 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 favored ORCL’s quarterly performance.
In the last reported quarter, Oracle’s Cloud services and license support revenues (64% of total revenues) increased 3% year over year (up 7% at cc) to $7.61 billion. The upside was driven by continued strength in the Fusion, Autonomous Database and Oracle Cloud Infrastructure (“OCI”) services.
The migration of several large-scale SAP clients to Oracle Fusion ERP cloud and increasing deal wins in several verticals, especially banking and healthcare, might have acted as tailwinds for the company’s ERP business.
Fusion ERP and NetSuite ERP were up 23% and 30%, respectively, in the fourth quarter of fiscal 2022.
The robust adoption of Oracle’s next-generation autonomous database and Oracle Dedicated Region Cloud, supported by machine learning (ML) and Artificial Intelligence (AI) capabilities, might have benefited the top line. Autonomous database in Gen2 public cloud infrastructure has been witnessing healthy traction.
This Zacks Rank #2 (Buy) company’s latest Multiple-VM Autonomous Database on Oracle Exadata Cloud@Customer service offering has been gaining considerable traction among on-premises clients. Multiple-VM Autonomous Database enables organizations to create and run isolated, highly available Autonomous Database instances on Exadata Cloud@Customer systems that are also running non-autonomous Oracle Databases. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oracle’s partnership with VMware for Oracle Cloud VMware Solution has been gaining prominence, which is expected to have aided customer growth in the to-be-reported quarter. The solution has gained popularity among leading enterprises in retail, telecommunication, finance and banking, manufacturing, government and others.
Strength in the Oracle Fusion Cloud Supply Chain & Manufacturing solution, integrated with new capabilities that help companies foster innovation and improve decision making, is expected to have contributed to the top line in the to-be-reported quarter.
Higher expenses on product development, especially increased investment toward cloud platform, might have dented fiscal first-quarter performance. Intense competition in the cloud computing market from the likes of Amazon Web Services, Azure platform and Google Cloud might have limited margin expansion.
Q1 Highlights
Oracle announced that it has renewed a strategic agreement with AT&T (T - Free Report) that will help give new capacity and capabilities for the company’s database and application workloads running in Oracle Cloud. The new five-year deal will build on AT&T’s use of Oracle Fusion Cloud ERP, Oracle Fusion Cloud Customer Experience (CX), OCl and other Oracle Cloud services.
On Jul 20, Oracle announced the general availability of Oracle Database Service for Microsoft’s (MSFT - Free Report) Azure. With this new offering, Microsoft Azure customers can easily provision, access, and monitor enterprise-grade Oracle Database services in OCI with a familiar experience. Users can migrate or build new applications on Azure and then connect to high-performance and high-availability managed Oracle Database services such as Autonomous Database running on OCI.
Oracle’s NetSuite announced the launch of NetSuite Smart Count, an inventory counting solution that enables organizations to improve the efficiency and accuracy of inventory management by automating inventory count and enabling them to be conducted live without freezing transactions, minimizing the impact on operations.
Moreover, Oracle rolled out Oracle Construction Intelligence Cloud Analytics, a new solution that combines data from Oracle Smart Construction Platform applications to give owners and contractors a comprehensive understanding of performance throughout their operations.
On Jul 14, Oracle announced a partnership with Claro to jointly offer OCI services to public and private sector organizations and enterprises in Colombia. Claro will become the host partner for an Oracle Cloud region in Colombia, which will enable it to offer OCI platform services along with professional and managed services to help customers adopt cloud solutions.
On Jun 30, Oracle announced the opening of the first OCI region in Mexico, thus becoming the first major cloud provider to establish a dedicated cloud region in the country.