Oracle Declaring Lower Than Last Year's Quarterly Earnings Today Won't Matter In The Long Run And Here's Why

Oracle Corporation ORCL is scheduled to declare its fourth quarter results for the quarter ending May 31 post the market closing on Wednesday. Analysts expect the company to report an EPS of $0.72, lower than the $0.80 it reported for the same quarter last year. However, according to Eric Schiffer, Patriarch Equity CEO, the earnings that Oracle declares today don’t hold much significance in the long run.

Schiffer was on CNBC recently to discuss why he thinks so.

Long-Term Winners

“The results in my opinion today are less significant, perhaps only to the respect that you are going to be able to see how they are doing on the cloud side,” Schiffer began. “But we are at an inflection point. So, right now is less relevant. What matters is how they do long-term on the cloud side, they are very well positioned.”

“Look, in my opinion and I have friends on the Oracle side that used to be there from a leadership perspective, there’s no better strategist than (Larry) Ellison. He is a genius with respect to strategy, he follows the Sun Tzu and modern day approach. Mark Hurd from an execution standpoint is one of the best.”

He continued, “And so, they really know how to beat the competition, they know how to take the gloves off and get it done. Long-term as they began to make more cloud acquisitions, I see them as being the winner in many respects. I think, it’s a great long-term stock to buy.”

Likely To Make A Purchase

V was asked if he owns Oracle’s stock currently. He replied, “I don’t own the stock, but I am certainly likely to make a purchase in the near-term, absolutely. I think, it’s a great company.”