Investors train eyes on Oracle software revenue
PALO ALTO, Calif., June 18 (Reuters) - Oracle Corp.
<ORCL.O> has said it will at least match Wall Street's profit
expectations for its key fourth quarter, but its revenue
performance remains a big question mark ahead of the world's
second-biggest software company's earnings report on Tuesday.
In a note to clients, Merrill Lynch analyst Chris Shilakes
said the health of Oracle's software sales will be a primary
focus as investors comb through the company's numbers, due
after the market close.
"Better than $950 million would be seen as more positive
while license revenues below $950 million would be seen less
favorably," Shilakes said.
A year ago, Oracle's fourth-quarter software sales came in
at $1.6 billion.
Analysts, on average, expect Oracle to earn 12 cents a
share on total revenue of $2.55 billion, according to research
firm Thomson First Call. Oracle had a 15-cent per share profit
on total sales of $3.3 billion last year.
"The Street anticipates better-than-feared (earnings per
share) driven by cost control; we believe any good news on the
revenue front would be positive," Banc of America Securities
analyst Bob Austrian said in a client note.
Oracle's year-on-year revenues have declined for the last
four consecutive quarters and the company has several times
issued forecasts that fell short of results.
Oracle shares fell 28 cents, or about 3 percent, to $8.92
on Nasdaq ahead of the company's earnings announcement.
((Palo Alto bureau 1 650-461-3401 or
lisa.baertlein@reuters.com))
REUTERS
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