Earnings Preview: Oracle Reports Fiscal Q2 Results Tuesday

| About: Oracle Corporation (ORCL)

Oracle Corporation (NASDAQ:ORCL) is anticipated to report earnings after the closing bell on December 20, 2011.

ORCL trades an average of 22.5 million shares per day.

52-Week High: $36.50
52-Week Low: $24.72
Book Value: $8.10
Float Short: 0.86%

Analysts are expecting an improvement of $0.09 in earnings per share compared to last quarter's results of $0.48. Investors will be looking to top $0.57 per share, based on the estimated mean earnings. Analyst estimates range between $0.54 and $0.58 per share.

The P/E ratio has dropped, as the current trailing twelve months (ttm) P/E ratio is 17.5, while the forward P/E ratio is now 12.9. It will be interesting to see if pricing is currently at a discount, or if the market has been correct to price in lower growth expectations.

Oracle always appears to be playing second fiddle, and yet always seems to come through for technology investors. Short interest is growing which is clearly a concern, but the track record of revenue growth is anything but priced in with a PE of under 13 looking forward.

For the same fiscal period year-over-year, revenue has improved to $35.62 billion for 2011 vs. $26.82 billion for 2010. The bottom line has rising earnings year-over-year of $8.55 billion for 2011 vs. $6.14 billion for 2010.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $12.03 billion for 2011 vs. $9.06 billion for 2010. Rising revenue along with rising earnings is a very good sign, and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue.

paid2trade.com revenue gross bar chart for ORCL

Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Aug-11 $ 8.35 B $ 8.40 B $ 44.15 M 0.53%
May-11 $ 10.75 B $ 10.81 B $ 52.30 M 0.49%
Feb-11 $ 8.67 B $ 8.81 B $ 135.86 M 1.57%
Nov-10 $ 8.35 B $ 8.65 B $ 303.82 M 3.64%
Aug-10 $ 7.28 B $ 7.59 B $ 312.24 M 4.29%

M = millions, B = billion.
Differences are rounded.
Some one-time items are often excluded in reported EPS.

paid2trade.com Quarterly Estimates And Actual EPS results ORCL

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for ORCL:

paid2trade.com short interest tool. The total short interest number of shares for ORCL

The number of days to cover short interest based on average daily trading volume for ORCL:

paid2trade.com number of days to cover short interest based on average daily trading volume for ORCL

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I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Tagged: , Application Software, Earnings
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