Oracle: Sentiment Strong Ahead of Earnings

| About: Oracle Corporation (ORCL)

Oracle (NASDAQ:ORCL) is scheduled to release Q2 earnings this Thursday, December 17, after the market closes.

Average analyst estimates for the giant software maker are $0.36/share in EPS and $5.69 billion in Revenue. Twenty-eight analysts track the stock with one upward EPS revision in the last 30 days and no downward EPS revisions in the last 30 days.

Last quarter, Oracle met analysts’ expectations of 0.30/shr.

I always find this a tough period, waiting to see if the company is going to meet, exceed, or miss their earnings estimates. One thing I have discovered of value is to analyze sentiment moves in a stock ahead of the company’s earnings release. In the case of Oracle, I will use the piqqem sentiment index for Oracle to see how sentiment has changed in the last quarter, for the months within that quarter, and from the end of the reporting quarter thru today.

I’m looking for moves or changes that may foreshadow the earning release. (piqqem leverages the ‘wisdom of crowds’ by allowing its users to vote on the price direction of a stock and then applies its own propriety factors to calculate sentiment for a security. In their model, -100 is the lowest and 100 is the highest sentiment).

Sentiment for ORCL (Click to enlarge) Click to enlarge

Source Piqqem

The above chart shows Oracle’s sentiment growing by 1 pt from the beginning of the quarter to today, with no change from the end of the quarter thru today. This last indicator has historically been the most accurate indicator regarding an earnings surprise, both upside and downside. On the Piqqem scale, Oracle’s sentiment rating of 35.72 indicates high quality and this is considered a buy. Only Oracle knows the actual results, but its current sentiment points to Oracle meeting or exceeding earnings estimates on Thursday.

Disclosure: No Positions