Oracle’s Earnings Arrive After-the-Bell

S&P 500 (NYSE:SPY) component Oracle (NASDAQ:ORCL) will unveil its latest earnings today, Thursday, September 20, 2012. Oracle develops, manufactures, markets, distributes, and services software designed to help its customers manage and grow their businesses.

Oracle Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 51 cents per share, a rise of 13.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 52 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 51 cents during the last month. For the year, analysts are projecting net income of $2.55 per share, a rise of 9.4% from last year.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 3 cents, reporting profit of 79 cents per share against a mean estimate of net income of 76 cents. In the third quarter of the last fiscal year, the company exceeded forecasts by 4 cents with profit of 58 cents versus a mean estimate of net income of 54 cents.

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Stock Price Performance: Between June 20, 2012 and September 18, 2012, the stock price rose $5.06 (18.08%), from $27.96 to $33.01. The stock price saw one of its best stretches over the last year between April 23, 2012 and May 2, 2012, when shares rose for eight straight days, increasing 4.3% (+$1.23) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 12.8% (-$4.22) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.6 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.23 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 32.3% to $15.39 billion while assets rose 6.6% to $40.02 billion.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 7.6% to $3.45 billion (68 cents a share) from $3.21 billion (63 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 1.3% to $10.92 billion from $10.78 billion.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 17.2% in the second quarter of the last fiscal year and 18.1% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 11.6% in the first quarter of the last fiscal year, 2.4% in the second quarter of the last fiscal year and 3.1% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With 24 analysts rating the stock a buy, none rating it a sell and 11 rating the stock a hold, there are indications of a bullish stance by analysts.

Wall St. Revenue Expectations: Analysts predict a rise of 0.4% in revenue from the year-earlier quarter to $8.43 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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