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Oracle's Q1: Things To Like A Lot, Things To Like Less

Oracle's Q1: Things To Like A Lot, Things To Like Less
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Oracle Corporation (NYSE: ORCL) shares fell 7 percent despite recording a first quarter earnings beat.

Wells Fargo noted that nothing about the quarter has changed the bank’s conviction that Oracle can return to double-digit EPS in FY2018-2019. Shares fell mostly on weak guidance, in the 2-4 percent range, that Oracle announced on the earnings call. 

“Despite investors' concerns, we believe Oracle is positioned to successfully and profitably transition its dominant, high-margin on-premise business to the cloud,” said Wells Fargo analyst Phillip Winslow.

Wells Fargo maintained an Overweight rating with a $62.50 price target.

Meanwhile, Brad Zelnick of Credit Suisse outlined positives and negatives from the quarter.

What Credit Suisse Liked

  • Strongest organic revenue growth since first quarter of 2015
  • Support revenue expected to be positive throughout the year
  • License revenue beat consensus estimates

What Credit Suisse Liked Less

  • Cloud revenues were guided below street estimates
  • Platform as a service ticked down in the quarter but is expected to exit the year improving
  • Transitionary quarter if not for FX benefits

Analysts at Credit Suisse maintained an Overweight rating on Oracle with a $62 price target.

Related Link:

The Core Reasons To Buy Oracle Haven't Changed

Image Credit: By Travelarz - Own work, CC BY-SA 3.0 pl, via Wikimedia Commons

Latest Ratings for ORCL

Jan 2018NomuraInitiates Coverage OnBuy
Jan 2018Morgan StanleyUpgradesEqual-WeightOverweight
Dec 2017RBC CapitalDowngradesOutperformSector Perform

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Posted-In: Credit Suisse Phillip Winslow Wells FargoAnalyst Color News Reiteration Analyst Ratings Best of Benzinga


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