Ahead of the Bell: Oracle

Associated Press |

NEW YORK (AP) — Shares of Oracle are sliding sharply before the opening bell after its fourth-quarter earnings split Wall Street analysts that follow the software maker.

Late Thursday, Oracle reported an adjusted profit of 92 cents per share on revenue of $11.32 billion. That was short of Wall Street projections on both counts.

Citigroup's Walter Pritchard said that license growth was soft in the quarter and he believes revenue from the company's software as a service (SaaS) cloud business is growing at a slow pace.

Pritchard stripped the company of a 'buy' rating reduced his price target to $41, from $44.

Brad Reback of Stifel Nicolaus remains more upbeat. While he agrees that the quarter was "messier than expected," he pointed out that there were some positives like solid cloud bookings and the second straight quarter of hardware growth.

Reback believes Oracle remains focused on growing its cloud business and considers it a healthy long-term move for the company. Unlike Pritchard, he stuck to his "Buy" rating and $47 price target.

Shares of Oracle Corp. fell $2.68, or 6.3 percent, to $39.82 in premarket trading.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
SPMWY Supreme Industries Ltd (The) (India) ADR n/a n/a n/a 0

Comments

Emerging Growth

H-Source Holdings Ltd.

H-Source Holdings Inc. is a technology company operating within the healthcare industry through its subsidiary, H-Source, Inc. The Company has developed a transaction platform that provides a private, secure and…

Private Markets

Ozobot by Evollve Inc

Ozobot is a world leader in compact super intelligent robots that entertain and educate through fun interactive gaming.

Lyft

Lyft matches drivers using their own personal vehicles with passengers who request rides through the smartphone app, and the passengers pay automatically through the app. When using Lyft, passengers have…