- Analysts predicting biggest quarterly sales in eight years
- Software giant has been rapidly growing its cloud arm
- Stock down 9% in 2022 after 30% rally since September
It might seem like a blast from the past but it could be a good week for Oracle (ORCL:NASDAQ) stock, with second-quarter earnings due after Wall Street closes this evening (UK time).
The Austin, Texas-based software and data analytics giant is forecast to deliver strong earnings and revenue for the three months to 30 November 2022. Data from Investing.com shows the analyst consensus estimates of $1.17 earnings per share on $11.95 billion revenue.
That implies a 17% year-on-year sales jump reflecting strong growth across its key business segments. If confirmed, that would mark Oracle’s highest quarterly sales in more than eight years, as its ongoing transition to the cloud continues to pay off.
CLOUD SOFTWARE SURPRISE
There is belief among analysts that Oracle’s performance in cloud services and license-backed software will surprise to the upside, reflecting growing demand from both large enterprises and government agencies. This revenue segment easily topped expectations in the last quarter, rising 14% on an annual basis to $8.42 billion.
Interestingly, options markets suggest that investors are pricing in a potential swing of approximately 8% in either direction for the shares in the wake of the earnings announcement.
Oracle shares have been robust through the 2022 de-rating environment, down around 9% year-to-date at $79.86. That’s far better than the S&P 500’s 18% decline or the 30% slump of the Nasdaq Composite, following a rough 30% rally for Oracle stock since the end of September.
