not so optimistic a view from briefing.com
13:55 ET ******
ORACLE CORPORATION (ORCL) 22 1/16 +7/16. Lowered expectations might help when they report earnings after the close tomorrow. Once proud
database software company Oracle (ORCL) has fallen on hard times recently. They were one of the first companies to report problems in Asia with their earnings report in September of last year. They definitely have problems there, and there overall earnings momentum has hit the wall. For their first fiscal quarter (Aug), ORCL is expected to report earnings of $0.16 per share. That is only 1 cent better than their operating earnings from the same quarter last year. A whole year of the Asia crisis, and still stuck in a rut. For a while, it didn't seem that way. In the prior quarter ended in June, ORCL reported earnings of $0.41 per share, 3 cents ahead of expectations and seemingly back on track. Earnings estimates for this quarter were raised and cautious optimism was spreading. In fact, the consensus estimate for ORCL for this quarter was $0.27 one month ago. The estimate reductions have been done quietly. The Briefing.com database shows only one upgrade and one downgrade since March, and no announced changes in earnings estimates. The company may have quietly been guiding estimates lower. ORCL is no longer a top rated stock. Zacks shows only 3 "strong buys," 11 "moderate buys," and
14 "holds" from Wall Street. That is a tepid stance. So, at least ORCL has lowered expectations heading into the report tomorrow, and ORCL does have a record of beating earnings consensus numbers That creates the chance of an initial positive reaction. Investors will remember, however, that last quarter appeared good at first as well, only for ORCL stock to shortly resume its sideways (at best) drift. ORCL has yet to convince investors that they are back on track with steady earnings growth. |
