Oracle Corporation (NYSE:ORCL) is slated to report fiscal first-quarter results after the bell Monday, and analysts at Deutsche Bank aren’t expecting any surprise beats.
The company has a $135 price target on the stock, which traded at $126.69 early Monday afternoon.
“Since last quarter's strong [Oracle Cloud Infrastructure] consumption and AI bookings, investor sentiment has tipped noticeably more bullish into what we think will be a relatively uneventful F1Q result,” the analysts wrote. “We don't expect any major surprises vs. guidance that embeds slower growing Cerner revenue coming into the organic base (particularly in SaaS).”
Wall Street analysts expect the cloud technology company to report a 10.7% increase in earnings per share, up from $1.03 for the same period last year to $1.14.
Revenue is expected to increase by 8.8% to $12.5 billion from $11.4 billion, according to Zacks Consensus Estimate.
“Our field work, albeit slightly more limited this quarter, suggests healthy licensing activity for an F1Q, which are typically driven by deals spilling over from F4Q as much as anything else,” analysts wrote.
“That said, as last quarter's shrugging off of a F4Q License miss showed, traditional deal activity is becoming less of a determinant for the stock. All eyes will be on OCI consumption, which is more difficult to appraise from field work.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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