Oracle Provides First Quarter Earnings Guidance Update with Stock Performance Insights

On a recent Tuesday morning, Oracle (NYSE:ORCL) updated its first quarter earnings guidance, suggesting an earnings per share (EPS) range of $1.31 to $1.35. This forecast aligns closely with the consensus EPS estimate of $1.32 among financial analysts.

Oracle Stock Performance

Oracle's stock commenced trading at $123.81 on Wednesday. A look at the company's financial health reveals a debt-to-equity ratio of 13.34, a quick ratio of 0.85, and a comparable current ratio. Oracle's lowest stock price over the past year was $99.26, with a peak at $132.77. Currently, the 50-day moving average stands at $120.18, while the 200-day moving average is at $115.64. Oracle boasts a substantial market capitalization of $340.29 billion and a price-to-earnings (P/E) ratio of 32.67. With a price-to-earnings-growth (PEG) ratio of 2.58 and a beta of 1.01, the firm shows varied performance metrics.

Oracle previously announced quarterly earnings on June 11th, reporting a quarterly EPS of $1.63, which fell slightly short of the expected $1.65 by two cents. Their quarterly revenue reached $14.29 billion, not quite meeting the anticipated $14.58 billion. Despite this, Oracle experienced a 3.3% revenue increase year-over-year and posted a substantial net margin of 20.27% and a high return on equity of 336.11%. Analysts currently project Oracle's EPS for the year to be $4.44.

Oracle Dividend Announcement

Oracle has also announced a forthcoming quarterly dividend. Set to be distributed on July 25th to shareholders of record as of July 11th, the dividend is $0.40 per share. This equates to a $1.60 dividend on an annualized basis and yields 1.29%. The dividend payout ratio currently stands at 42.22%.

Analyst Upgrades and Downgrades

Oracle has undergone a variety of evaluations from research analysts. While JPMorgan Chase & Co. raised their Oracle stock price target from $105.00 to $110.00 with a neutral recommendation, Citigroup lowered their target from $133.00 to $128.00, also suggesting a neutral stance. Goldman Sachs and BMO Capital Markets have offered optimistic views, with while Piper Sandler labelled the stock overweight, forecasting a rise in stock prices. Out of twenty-eight analysts, thirteen hold a neutral view and fifteen recommend buying. Overall, Oracle has a Moderate Buy average rating, with a targeted consensus price of $136.18.

Insider Activity at Oracle

Oracle's internal dealings have also seen movement, with Director George H. Conrades selling 25,000 shares at an average of $116.13 each. Post-sale, Conrades retains 17,836 shares valued around $2.07 million. In addition, CEO Safra Catz sold 790,000 shares at an average price of $126.54, totalling nearly $100 million. Following this transaction, Catz now directly owns over 1.1 million shares of Oracle, with a valuation exceeding $141.5 million. In the previous 90 days, insiders have offloaded 880,000 shares worth more than $110 million. Corporate insiders currently hold 42.80% of Oracle stock.

About Oracle

Internationally recognized, Oracle Corporation provides a comprehensive range of products and services tailored to the needs of enterprise IT environments. Oracle's cloud-based SaaS offerings include an array of cloud software applications, from enterprise resource planning and enterprise performance management to human capital management and supply chain management. Oracle continues to invest and lead in sectors like healthcare with Oracle Cerner, in advertising with Oracle Advertising, and the NetSuite applications suite. Emphasizing the sales, service, and marketing aspects, Oracle remains a significant player in the enterprise software industry.

Oracle, Earnings, Stock