Oracle Earnings Summary: Missed Estimates, But RPO And Demand Look Robust

Brian Gilmartin, CFA
10.9K Followers
(8min)

Summary

  • Oracle reported their fiscal Q4 ’24 financial results after the bell last Tuesday, June 11th, 2024, and while the numbers weren’t great, the stock price reaction was notable.
  • On a P/E basis, the stock looks fairly valued, with the other metrics indicating ORCL trading at 7x revenue, 20x and 32x cash flow and free cash flow (ex-cash), and with a 3% free cash flow yield.
  • The ultimate question is can Oracle change its stripes from an on-premise database provider (the legacy business) to a cloud and now AI leader, which it has been transforming to for the last 15 years?

Oracle headquarter building in Bucharest. Logo of the Oracle company on a office building.

Cristi Croitoru

Oracle (NYSE:ORCL) reported their fiscal Q4 ’24 financial results after the bell last Tuesday, June 11th, 2024, and while the numbers weren’t great (both revenue and EPS missed consensus estimates), the stock price reaction was notable, probably due to the growth in RPO (remaining

This article was written by

10.9K Followers
Brian Gilmartin, is a portfolio manager at Trinity Asset Management, a firm he founded in May, 1995, catering to individual investors and institutions that werent getting the attention and service deserved, from larger firms. Brian started in the business as a fixed-income / credit analyst, with a Chicago broker-dealer, and then worked at Stein Roe & Farnham in Chicago, from 1992 - 1995, before striking out on his own and managing equity and balanced accounts for clients. Brian has a BSBA (Finance) from Xavier University, Cincinnati, Ohio, (1982) and an MBA (Finance) from Loyola University, Chicago, January, 1985. The CFA was awarded in 1994. Brian has been fortunate enough to write for the TheStreet.com from 2000 to 2012, and then the WallStreet AllStars from August 2011, to Spring, 2012. Brian also wrote for Minyanville.com, and has been quoted in numerous publications including the Wall Street Journal.

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