Oracle: Optimism Grows On FY Q4

There is growing anticipation that Oracle (ORCL) is going to report strong numbers for its fiscal fourth quarter ending May 31. Tuesday morning, JMP Research analyst Patrick Walravens reiterated his Strong Buy rating and $22 price target on the stock.

He writes that Oracle “continues to benefit from consolidating the enterprise software market and selling a larger breadth of products into its installed base.” Adds Walravens: “In the words of one industry contact, Oracle’s sales teams 'should kill it' this quarter.”

Walravens boosts his fiscal fourth quarter license revenue estimate to $2.387 billion from $2.353 billion, above the consensus of $2.336 billion. He raises his applications license revenue estimate to $746 million from $712 billion. Total revenue increases to $5.697 billion form $5.644 billion; the consensus is $5.591 billion.

His non-GAAP EPS estimate for the quarter increases to 36 cents from 35 cents. For fiscal 2007, he goes to $1.01, from $1, 2 cents ahead of consensus. For ‘08, he now sees $1.16, up from $1.15.

Last week, analysts at both Pacific Crest and Cowen made similarly bullish comments on the quarter.

Tuesday, Oracle is up 23 cents at $19.47.