Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Oracle Corporation ORCL shares were trading lower by $1.23 (3.3 percent) at $37.04 in Thursday's session. Despite reporting better-than-expected Q1 EPS ($0.53 vs. $0.52 estimates), the Street is focusing on its lower sales ($8.4 billion vs. $8.54 billion). The company is expecting Q2 adjusted EPS at $0.63-$0.66 vs. $0.65 estimates.
After a lower open ($36.74 vs. Wednesday's close of $38.27), it declined another $0.24 to $36.50 before reversing course. The ensuing rally could not even reach Wednesday's low ($37.93), only reaching $37.67 before falling back to the $37 area.
It has been a rough year for the issue as it made a new all-time high in December ($46.71) before ending the year at $44.97. At $37, it is lower by 18 percent compared to the S&P 500 decline of nearly 3 percent.
The only analysts comment came from JP Morgan, who remains Underweight on the issue and lowered its price target from $38 to $37.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
