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Oracle Prepares for Key Fiscal Earnings Report
Analysts Expect Insights into Revenue and AI Projects
Oracle (ORCL) is approaching the release of its fiscal third-quarter earnings, slated for after the market closes on Monday. Investors and analysts are keenly anticipating the company’s report, particularly looking for indicators of revenue growth and insights regarding the Stargate joint venture.
According to data from Visible Alpha, the consensus among 14 analysts tracking Oracle’s stock shows a slight majority leaning towards a “buy” rating. Eight analysts recommend buying while six suggest holding the stock. The average price target set by these analysts is approximately $194, signaling a potential upside of around 25% based on the stock’s close on Friday.
Forecasted Financial Performance
Analysts predict that Oracle will reveal fiscal first-quarter revenues of approximately $14.38 billion, which would reflect an 8% increase compared to the same quarter last year. Adjusted earnings are projected to reach $4.29 billion, translating to $1.49 per share, an increase from the previous year’s figures of $3.98 billion or $1.41 per share.
Focus on AI Joint Venture Stargate
Of significant interest to analysts is the commentary surrounding Oracle’s Stargate project, a collaborative initiative with OpenAI and SoftBank aimed at creating a $500 billion artificial intelligence infrastructure. UBS analysts noted that updates on this venture could overshadow the overall earnings report, highlighting its importance to the company’s future. They have maintained a “buy” rating, along with a price target of $210.
Jefferies analysts echoed this sentiment, observing that market sentiment has shifted positively following the Stargate announcement made on January 21. They have also reiterated a more optimistic price target of $220.
Despite a decrease in share value this year, Oracle’s stock has appreciated by about 35% over the past year, with a near 3% uptick observed on Friday, indicating a degree of investor confidence heading into the earnings report.
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