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Oracle (ORCL) to Report Q4 Earnings: What's in the Cards?

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Oracle (ORCL - Free Report) is scheduled to release fourth-quarter fiscal 2023 results on Jun 12, after market close.

For fourth-quarter fiscal 2023, Oracle anticipates total revenue growth rate, including Cerner on a year-over-year basis, in the range of 15-17% at USD and 17-19% at constant currency (cc). The Zacks Consensus Estimate for revenues is pegged at $13.74 billion, indicating an increase of 16.04% 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 3-5% at cc and $1.56-$1.60 per share in USD.

The Zacks Consensus Estimate for earnings has remained steady at $1.58 per share in the past 30 days, suggesting a 2.6% 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 3.24%.

Oracle Corporation Price and EPS Surprise

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 third 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 fourth quarter of 2023, total cloud, including Cerner, is expected to grow from 51% to 53% at cc and from 49% to 51% 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.

On May 18, Oracle announced that it is joining the Scheduling Standards Consortium to improve logistics efficiency. 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.

The robust adoption of Oracle’s next-generation Autonomous Database and Oracle Dedicated Region Cloud, supported by machine learning and artificial intelligence capabilities, might have benefited the top line. Autonomous Database in Gen2 public cloud infrastructure is witnessing healthy traction.

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 #4 (Sell) and an Earnings ESP of -0.63%. 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.

Accenture (ACN - Free Report) has an Earnings ESP of +1.93% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ACN is scheduled to release third-quarter fiscal 2023 results on Jun 22. The Zacks Consensus Estimate for ACN’s earnings is pegged at $2.94 per share.

Accolade (ACCD - Free Report) currently has an Earnings ESP of +0.94% and a Zacks Rank #3.

The company is set to report first-quarter fiscal 2024 results on Jun 29. The Zacks Consensus Estimate for ACCD’s loss per share is pegged at 64 cents.

Jabil (JBL - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #3 at present.

JBL is expected to report third-quarter fiscal 2023 results on Jun 15. The Zacks Consensus Estimate for JBL’s earnings is pegged at $1.88 per share.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 


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