Oracle Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Oracle (NASDAQ:ORCL) will unveil its latest earnings on Tuesday, December 18, 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 58 cents per share, a rise of 9.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 59 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 58 cents during the last month. For the year, analysts are projecting net income of $2.53 per share, a rise of 8.6% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported profit of 49 cents per share versus a mean estimate of net income of 51 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 3 cents.

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A Look Back: In the first quarter, profit rose 10.5% to $2.03 billion (41 cents a share) from $1.84 billion (36 cents a share) the year earlier, but fell short analyst expectations. Revenue fell 2.3% to $8.18 billion from $8.37 billion.

Stock Price Performance: From November 13, 2012 to December 12, 2012, the stock price rose $1.92 (6.4%), from $30.02 to $31.94. The stock price saw one of its best stretches over the last year between November 14, 2012 and December 4, 2012, when shares rose for 14 straight days, increasing 9.5% (+$2.80) over that span. It saw one of its worst periods between November 6, 2012 and November 14, 2012 when shares fell for seven straight days, dropping 6.5% (-$2.05) over that span.

Wall St. Revenue Expectations: On average, analysts predict $9.03 billion in revenue this quarter, a rise of 2.5% from the year-ago quarter. Analysts are forecasting total revenue of $38.29 billion for the year, a rise of 2.9% from last year’s revenue of $37.22 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 18.1% in the third quarter of the last fiscal year and 7.6% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 2.4% in the second quarter of the last fiscal year, 3.1% in the third quarter of the last fiscal year and 1.3%in the fourth quarter of the last fiscal year before dropping in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.74 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.

Analyst Ratings: With 20 analysts rating the stock a buy, none rating it a sell and 14 rating the stock a hold, there are indications of a bullish stance by analysts.

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

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