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Oracle Corporation (NYSE:ORCL), an enterprise software company, develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. It licenses database and middleware software, including database management software, application server software, service-oriented architecture and business process management software, data integration software, business intelligence software, identity and access management software, content management software, portals and user interaction software, development tools, and Java; and applications software comprising enterprise resource planning, customer relationship management, enterprise performance management, supply chain management, business intelligence applications, enterprise portfolio project management, Web commerce, and industry-specific applications software.

It is scheduled to report its Q4 2012 results on June 21, 2012, after the market closes.

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last quarters. In the last quarter it reported $0.62 EPS, beating analyst estimates of $0.56.

The consensus EPS is $0.78 based on 37 analysts' estimates, up from $0.75 a year ago. Revenue estimates are $10.89B, up from $10.81B a year ago. The median target price by analysts for the stock is $34.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On May 4, 2012, Stifel Nicolaus reiterated Buy rating for the company.
  • On March 22, 2012, UBS reiterated Buy rating for the company.
  • On March 21, 2012, MKM Partners initiated Buy rating for the company.
  • On March 21, 2012, FBR Capital reiterated Outperform rating for the company.
  • On February 22, 2012, Longbow initiated Neutral rating for the company.
  • On February 20, 2012, the company was downgraded from Mkt Outperform to Mkt Perform at JMP Securities.
  • On January 24, 2012, the company was downgraded from Outperform to Neutral at Macquarie.
  • On January 9, 2012, the company was downgraded from Outperform to Market Perform at BMO Capital Markets.
  • On December 21, 2011, Ticonderoga reiterated Buy rating for the company.
  • On December 21, 2011, Macquarie reiterated Outperform rating for the company.
  • On December 21, 2011, Collins Stewart reiterated Neutral rating for the company.
  • On December 21, 2011, the company was downgraded from Buy to Hold at Canaccord Genuity.
  • On December 21, 2011, BMO Capital Markets reiterated Outperform rating for the company.

Key Metrics

  • Market Cap: 134.43B
  • 52-week trading range: 24.72 - 34.13
  • Trailing P/E: 14.15
  • Forward P/E: 10.27
  • Price/Sales: 3.64
  • Price/Book: 3.14
  • PEG Ratio: 0.92
  • Total Debt: 14.78B
  • Annual dividend yield: 0.90%
  • Return on Equity: 24.25%
  • Return on Assets: 12.21%

Latest Developments

  • On June 5, 2012, Oracle Corporation announced that it has entered into an agreement to acquire Collective Intellect. Collective Intellect's cloud-based social intelligence solutions enable organizations to monitor, understand and respond to consumers' conversations on social media platforms such as Facebook and Twitter.
  • On June 4, 2012, Reuters reported, according to a lawyer for Hewlett Packard, that Oracle Corp violated a clear contract with Hewlett Packard Co when it decided it would no longer make new versions of its database software compatible with HP's Itanium-based servers.
  • On May 23, 2012, Oracle Corporation announced that it has entered into an agreement to acquire Vitrue, a cloud-based social marketing and engagement platform that enables marketers to centrally create, publish, moderate, manage, measure and report on their social marketing campaigns and activities on social media platforms such as Facebook, Twitter, YouTube and Google+.
  • On May 23, 2012, Reuters reported that Google Inc.'s Android mobile platform did not infringed Oracle Corporation's patents, a California jury decided, putting an indefinite hold on Oracle's quest for damages in a legal fight between the two companies over Smart phone technology.
  • On May 8, 2012, Reuters reported that Google Inc. infringed some of Oracle Corp's copyrights on the Java programming language, a U.S. jury found on Monday after days of deliberation.
  • On May 3, 2012, Reuters reported that an Oracle Corporation attorney ruled out a settlement with Hewlett-Packard Co (NYSE:HP) in a bitter lawsuit over the Itanium microprocessor, a day after the judge refused to resolve the case for either side before trial.
  • On April 30, 2012, Charming Shoppes announced that it has selected Oracle Retail Merchandising and Stores to establish a cross-channel platform serving its brands. Charming Shoppes will use Oracle Retail applications to deploy a modern technology platform that helps transform its merchandising, supply chain and store operations to reduce the total cost of ownership of hardware, software and support while enabling a better shopping experience for customers across channels and brands.
  • On April 25, 2012, Oracle Corporation announced that GREE, Inc uses Oracle's Sun ZFS Storage 7420 appliance and Sun Fire X4170 M2 server with Oracle Solaris 11 to support their social network data analysis
  • On April 24, 2012, Oracle Corporation announced that the First Bank of Nigeria (FirstBank), has successfully deployed Oracle Financial Services Know Your Customer and Oracle Financial Services Regulatory Reporting Solution.
  • On April 23, 2012, Carolina Biological Supply Company announced that it has selected Oracle Corporation's Oracle ATG Web Commerce to help improve its customers' online experience and increase sales.

Competitors

Oracle Corporation operates in Application Software industry. The company could be compared to Citrix Systems, Inc. (NASDAQ:CTXS), Red Hat, Inc. (NYSE:RHT), TIBCO Software Inc. (NASDAQ:TIBX), and VMware, Inc. (NYSE:VMW). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

(click to enlarge)ORCL Chart

ORCL data by YCharts

Competitors' Latest Developments

  • On June 7, 2012, Citrix Systems, Inc. announced that it has signed a definitive agreement to acquire privately held Bytemobile, provider of data and video optimization solutions for mobile network operators.
  • On May 22, 2012, VMware, Inc. announced that it has entered into a definitive agreement to acquire Wanova Inc., a provider of intelligent desktop solutions that centralize and simplify the management of physical desktop images while enabling users to take advantage of the native performance of a PC.
  • On May 1, 2012, TIBCO Software, Inc. announced that PT XL AxiataTbk (NYSE:XL), Indonesia's mobile carrier, has chosen TIBCO software to power its new mobile payment solution, expanding its revenue opportunities and bridging economic barriers for the country's unbanked population.
  • On April 25, 2012, Citrix Systems, Inc. announced that for the second quarter of 2012, it expects net revenue to be in the range of $605-$615 million, GAAP diluted earnings per share to be in the range of $0.34 to $0.37 and Non-GAAP diluted earnings per share to be in the range of $0.58 to $0.59, excluding $0.11 related to the effects of amortization of intangible assets primarily related to business combinations, $0.19 related to the effects of stock-based compensation expenses, and $(0.05) to $(0.09) for the tax effects related to these items.
  • On April 18, 2012, VMware, Inc. announced that for second quarter of 2012, it expects to be in the range of $1.10 and $1.12 billion. For fiscal 2012, it expects revenue to be in the range of $4.525-$4.625 billion.
  • On April 18, 2012, TIBCO Software, Inc. announced the pricing of an offering of $525 million aggregate principal amount of its 2.25% convertible senior notes due 2032 (the Notes).
  • On April 16, 2012, TIBCO Software, Inc. announced that it intends to offer, subject to market and other considerations, approximately $500 million aggregate principal amount of convertible senior notes due 2032 through an offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.
  • On April 12, 2012, TIBCO Software, Inc announced that it has completed the acquisition of LogLogic, Inc., a privately held company based in San Jose, California, that provides scalable log and security management platforms specifically designed for the enterprise and cloud.
  • On April 11, 2012, VMware, Inc. announced changes to executive management team. Carl Eschenbach has been promoted to Chief Operating Officer and Co-President. Eschenbach previously served as VMware's Co-President.
  • On April 11, 2012, Citrix Systems, Inc. announced it has completed the acquisition of Podio, a privately held company that offers a collaborative work platform which supports people and teams getting work done the way they want in a social setting.
  • On April 4, 2012, TIBCO Software, Inc. announced that it has entered into a definitive agreement to acquire LogLogic Inc., a privately held company based in San Jose, California that offers one of the industry's scalable log and security management platforms specifically designed for the enterprise and cloud.
  • On April 3, 2012, Red Hat, Inc. announced that INTTRA will implement several solutions from the Red Hat JBoss Middleware portfolio to enhance and speed the delivery of business solutions for the shipping industry.
  • On March 29, 2012, TIBCO Software, Inc. announced that its Board of Directors has authorized a new share repurchase program pursuant to which the company may repurchase up to $300 million of its outstanding common stock.
  • On March 29, 2012, TIBCO Software, Inc. announced that for second quarter of 2012, it expects total revenue to be $240-$244 million, GAAP earnings per share to be $0.13-$0.15 and non-GAAP earnings per share (NYSEARCA:EPS) to be $0.22-$0.23.
  • On March 28, 2012, Red Hat, Inc. announced that its Board of Directors has authorized the repurchase of up to $300 million of Red Hat's common stock from time to time on the open market or in privately negotiated transactions.
  • On March 28, 2012, Red Hat, Inc. announced that for first quarter of 2013, it expects revenue to be in the range of $307-$311 million and non-GAAP earnings per share to be approximately $0.25-$0.27.
  • On February 28, 2012, Symantec Corporation and VMware, Inc. announced five new security integrations with the VMware cloud infrastructure suite, designed to deliver protection for virtual and cloud environments along with operational cost savings.
  • On February 27, 2012, Citrix Systems, Inc. and Bytemobile, Inc announced the formation of a strategic partnership that will result in the delivery of new solutions for the mobile data market.
  • On February 24, 2012, The Lanier Law Firm announced a patent infringement lawsuit filed on behalf of Freemont, Calif.-based Twin Peaks Software Inc. against Red Hat Inc. and its Sunnyvale, Calif.-based subsidiary Gluster Inc.
  • On February 22, 2012, Red Hat, Inc. announced that CDLAN, an Italian telecommunications operator and provider of value-added ICT services, has deployed Red Hat Enterprise Virtualization to create a virtual platform for the provisioning of Software-as-a-Service (NASDAQ:SAAS) to its customers.
  • On February 15, 2012, Atos SA, EMC Corporation and VMware Inc announced a strategic alliance for open cloud computing. Additionally, Atos SA plans to create a new company, Canopy, providing a wide range of cloud solutions and services designed to speed the delivery and help customers quickly take advantage of the benefits of cloud computing.
  • On February 9, 2012, Red Hat, Inc. and Arkelis NV, a fully owned subsidiary of SWIFT, the global provider of secure financial messaging services, announced that financial institutions can deploy Arkelis' Advanced Messaging Hub (NYSE:AMH) on Red Hat Enterprise Linux to manage significant volumes of incoming and outgoing messaging traffic more effectively.
  • On January 25, 2012, Citrix Systems, Inc. announced that for fiscal 2012, revenue is targeted to be in the range of $2.49 billion to $2.51 billion; GAAP diluted earnings per share is targeted to be in the range of $1.88 to $1.97; and Non-GAAP diluted earnings per share is targeted to be in the range of $2.70 to $2.74, excluding $0.41 related to the effects of amortization of intangible assets primarily related to business combinations, $0.71 related to the effects of stock-based compensation expenses, and $(0.26) to $(0.39) for the tax effects related to these items.
  • On January 23, 2012, VMware, Inc. announced that for the first quarter of 2012, revenues are expected to be in the range of $1.015-$1.040 billion and for fiscal 2012, revenues are expected to be in the range of $4.475-$4.6 billion.
  • On December 21, 2011, TIBCO Software, Inc. announced that for the first quarter of 2012, it expects revenue to be $220-$225 million and GAAP earnings per share to be $0.09-$0.10.
  • On December 18, 2011, Red Hat, Inc. announced that for the fourth quarter of 2012, it expects revenue of approximately $289-$292 million and non-GAAP EPS of approximately $0.26-$0.27.

Technical Insight


Oracle seems to be forming a big triangle since May 2011. It has recently tested the support at $25.50 and bounced back up.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Oracle Releases Earnings On Thursday