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

Trending Articles

  • No items found.

Emerging Growth

Winston Gold Mining Corp.

Winston Gold Mining Corp is a mineral exploration and development company. The Company is engaged in acquiring, exploring, developing, and operating mining properties.

Private Markets

WayBetter

The spark hit Jamie when he saw co-workers competing to lose weight. Instead of pizzas and subs, they were eating salads and jogging along the river. Some were sneakily leaving…

Mesa-Marshall 2 Well Project

MESA Resources ("MESA") is sponsoring the development of the two well direct drilling project -- "Mesa-Marshall #1-2". MESA, founded in 1992, is engaged in the acquisition, exploration and development of…