Analysts Respond To Oracle's Q1 Earnings: 4 At Buy, One Remains Underperform

A plethora of analysts reacted to Oracle Corporation ORCL's earnings numbers for the first quarter. For the second quarter in a row, the company delivered weaker-than-expected earnings, thus dampening investor sentiments on the stock. As a result, the stock dropped more than 4 percent on Friday.

The company reported EPS of $0.55 on revenue of $8.6 billion thus missing Street estimates of $0.58 a share on revenue of $8.7 billion for the first quarter. Cloud revenues from Saas and PaaS recorded 77 percent jump on a year-over-year basis to $798 million. Similarly, IaaS revenue advanced 59 percent in American dollar terms.

Related Link: Oracle's Legacy Business A Drag On Q1

The following are the ratings given by different brokerages after the first quarter results:

• D.A. Davidson maintains a Buy rating.
• CLSA maintains an Underperform rating with an unchanged $42 price target.
• Jefferies reiterated a Buy rating with a target price of $51.
• Barclays retained its Overweight rating with a price objective of $48. The brokerage termed Q1 as a "typical Oracle quarter."
• UBS maintains its Buy rating and $44 as the price target on clear cloud progress.

At time of publication, Oracle was down 4.41 percent on the day at $39.06.

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