Justin Sullivan/Getty Images News
Oracle (NYSE:ORCL) is scheduled to report third-quarter earnings on Monday, March 11th, after market close.
Analysts expect a year-over-year increase in both the top and bottom lines, with earnings per share of $1.38 on revenues of $13.3 billion.
After a disappointing first-half of the year, sentiments are mixed around the Austin, Texas-based company’s third-quarter results.
Analysts at Guggenheim believe Oracle (ORCL) will struggle to meet third-quarter expectations as it deals with a tough macroeconomic environment along with a “steep hill of new business needed to achieve consensus estimates.”
According to Jefferies, it would be unusual for the company to miss three quarters in a row. The investment firm believes Oracle’s (ORCL) third-quarter expectations are achievable.
“Q3 is a relatively small quarter for Oracle and we do not think there is much room for meaningful outperformance in the major segments,” said brokerage Barclays.
Investors will also be keeping a close eye on the company’s capital expenditure as it builds out data center capacity to support growing demand for Oracle Cloud Infrastructure due to strong AI bookings.
Over the last three months, the company has seen significant revisions to its estimates. Its earnings per share estimates have been revised upwards 12 times vs. 10 downward revisions, while its revenue estimates have been revised upwards five times, compared to 14 downgrades.
Seeking Alpha analysts at large consider ORCL a Hold. This compares with average Wall Street rating and SA Quant rating of Buy.
