Oracle will report earnings for the second quarter of its 2019 fiscal year after markets close on Monday. Executives will discuss the results with analysts on a conference call at 5 p.m. Eastern time.
Here are the numbers to watch:
- Earnings: 78 cents per share, excluding certain items, as expected by analysts, according to Refinitiv.
- Revenue: $9.52 billion as expected by analysts, according to Refinitiv.
The estimate implies a 1 percent decline in revenue year over year.
In its fiscal second quarter, which ended on Nov. 30, Oracle announced new business from Chegg and Western Digital, and president of product development Thomas Kurian left the company after 22 years and took the job running Google’s cloud business.
“Our sense is that Mr. Kurian became frustrated while at Oracle with the growth of its public cloud business relative to other larger cloud vendors, such as AWS, Google Cloud and Microsoft Azure,” JMP Securities analysts Patrick Walravens and Mathew Spencer wrote in a note distributed to clients on Friday.
With respect to guidance, for the fiscal third quarter, analysts expect Oracle to report 84 cents in earnings per share, excluding certain items, on $9.85 billion in revenue, according to Refinitiv.
The company was expected to continue to repurchase shares of its stock.
“With roughly $20 billion of buyback ammo left during 2Q, we view this as a level for ORCL to offset FX headwinds as well as to limit downside in shares, as all signs have pointed to the company viewing its stock as undervalued during the quarter,” Nomura Instinet analysts Christopher Eberle and Charles Rogers wrote in a note distributed to clients on Wednesday.
They thought investors would need to see more than a buyback-based earnings beat in order to get excited.
Oracle stock is down 3 percent since the beginning of 2018.
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