Cloud service provider Oracle (ORCL) is set to release its first quarter of Fiscal 2025 financials on September 9. Wall Street analysts expect the company to report earnings of $1.33 per share for Q3, up 11.8% year-over-year. Also, analysts expect revenues to increase 6% from the year-ago figure to $13.23 billion, according to TipRanks’ data.
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It’s important to highlight that the company has surpassed the consensus EPS estimates in seven out of the last nine quarters.
Key Takeaways from TipRanks’ Bulls & Bears Tool
Analysts forecast both revenues and earnings to increase in Q1, signaling optimism for Oracle’s near-term performance despite lingering challenges.
According to TipRanks’ Bulls Say, Bears Say tool shown below, analysts believe Oracle is well-positioned for growth due to the increasing demand for generative AI workloads, on-premise migrations, and its partnership with Microsoft Azure, which are all driving Oracle Cloud Infrastructure adoption. They noted that the company’s cloud infrastructure business continues to expand rapidly.
Meanwhile, bears pointed out that intensified competition may put pressure on Oracle’s product pricing. They also expressed concerns over Oracle’s fiscal Q4 total revenues, which fell 2% short of expectations at $14.3 billion. Additionally, analysts highlighted that compliance with economic sanctions and regulatory restrictions presents operational risks, potentially restricting Oracle’s ability to serve certain customers and affecting its overall performance.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can gauge options traders’ expectations for the stock post-earnings report. The at-the-money straddle indicates traders predict an 8.37% price move in either direction, based on a $138 strike price, with call options priced at $4.85 and put options at $0.10.
Is ORCL Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ORCL stock based on 14 Buys and 13 Holds assigned in the past three months, as indicated by the graphic below. After a 37% year-to-date increase, the average ORCL price target of $150.43 per share implies 5.48% upside potential.
