Oracle's Upcoming Earnings: What You Need To Know

Oracle (NAS: ORCL) is expected to report Q3 earnings on March 20. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Oracle's revenues will grow 3.4% and EPS will grow 6.5%.

The average estimate for revenue is $9.37 billion. On the bottom line, the average EPS estimate is $0.66.


Revenue details
Last quarter, Oracle notched revenue of $9.11 billion. GAAP reported sales were 3.4% higher than the prior-year quarter's $8.79 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.64. GAAP EPS of $0.53 for Q2 were 23% higher than the prior-year quarter's $0.43 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 80.3%, 250 basis points better than the prior-year quarter. Operating margin was 38.3%, 230 basis points better than the prior-year quarter. Net margin was 28.4%, 350 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $38.25 billion. The average EPS estimate is $2.70.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,445 members out of 3,657 rating the stock outperform, and 212 members rating it underperform. Among 829 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 798 give Oracle a green thumbs-up, and 31 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oracle is outperform, with an average price target of $35.53.

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The article Oracle's Upcoming Earnings: What You Need To Know originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Oracle. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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