ORCL Stock Forecast: Oracle’s Q1 Earnings Report Disappoints

Oracle Corporation (ORCL:NYE) faced a setback in after-hours trading as its first-quarter Fiscal Year 2024 earnings report disappointed investors. Despite delivering earnings per share (EPS) of $1.19, surpassing the analysts’ consensus estimate of $1.15, the company’s revenue figures fell short of expectations. Hence, causing a slight dip in its stock value. Let us look into the details of the recent earnings and Oracle stock forecast.

Oracle Faces Revenue Miss:

In the first quarter of FY 2024, Oracle recorded total sales of $12.45 Billion, reflecting an impressive year-over-year growth rate of 8.7%. However, this figure fell $20 Million short of analysts’ predictions. While the revenue growth is certainly noteworthy, the market had set high expectations for the tech giant, which it narrowly missed.

Cloud Segment Shines:

One of the standout highlights from Oracle’s earnings report was the exceptional performance of its cloud segment. This division posted a remarkable 30% year-over-year growth, reaching $4.6 Billion in revenue. This substantial increase played a pivotal role in driving overall revenue growth for the company.

ORCL Stock Forecast: Valuation Analysis

Investors are now pondering whether Oracle’s stock (ORCL:NYE) is a buy, sell, or hold given these results. The analysts’ sentiment currently leans towards a “Buy” consensus rating for ORCL stock. The accompanying price target Of ORCL stock forecast of USD 123.17 suggests a potential 2.80% downside. The current price of the stock is USD 126.71.

Oracle has a high market CAP of USD 342.87 Billion. ORCL stock is low in volatility but is overpriced compared to its peers. It is viewed as slightly bullish by the analysts. Moreover, it experienced a rise of 55.02% in year-to-date capital gain value.

ORCL Stock Forecast: Analyst Insights

Analysts have weighed in on Oracle’s performance, with many acknowledging the company’s strong earnings per share. An analyst at Citigroup maintains a Buy rating on the stock and has raised the price target from USD 121 to USD 138.

However, the revenue miss has raised concerns about Oracle’s ability to meet high market expectations consistently. Investors may be looking for more consistent revenue growth in the coming quarters to justify their confidence in the stock.

Bottom Line:

In conclusion, Oracle’s first-quarter earnings report for Fiscal Year 2024 has garnered mixed reactions from investors. The exceptional growth in the cloud segment underscores Oracle’s potential for future success. However, the market’s high expectations may necessitate consistent strong performances to maintain investor confidence. Keep an eye on Oracle’s future revenue growth as it strives to meet the market’s demand.

Momina Arif