Oracle Corp. (ORCL, Financial) is expected to release its results for the last quarter of fiscal 2018 after market close on Tuesday, June 19.
A total of 30 analysts were surveyed on Oracle Corp’s earnings. Estimates range between a low of 92 cents to a high of 98 cents per share. The mean of the range is 94 cents, which represents 5.6% growth on a year over year basis. In revenue, the estimates range between a low of $11.02 billion and a high of $11.4 billion. The average is $11.19 billion, a 2.3% increase from the prior-year quarter.
On Tuesday, shareholders will also be updated on earnings and sales for the entire year of 2018. Net earnings are expected to be $3.08 per share, a 12.4% growth year over year, and sales are projected to $39.8 billion. A year ago, the U.S. software company reported sales of $37.9 billion.
The chart below depicts the trend in Oracle Corp.’s total revenues over the last five years:
Annual sales are up-trending again after a fall in 2016.
The chart below depicts the trend in Oracle Corp.’s yearly net Income over the last five fiscal years:
GuruFocus’ chart illustrates the trend over the trailing 12-months in the operating and net margin of Oracle.
ORCL data by GuruFocus.com
The company has trailing 12-month operating and net margins of 35.59% and 9.25%. The industry has median margins of 4.54% and 3.36%.
GuruFocus gives Oracle Corp. a profitability and growth rating of 7 out of 10.
Concerning the company’s future profitability and growth, analysts forecast 3.23% annual average growth in yearly sales to $40.936 billion in 2019 and $42.386 billion in 2020. Earnings are predicted to increase 9.4% from $3.08 per share in 2018 to $3.37 per share in 2019. The annual average growth rate is 9.10% over the next five years. Over the last five years, earnings grew 0.2%. That is an average annual rate.
The company will also provide shareholders with updated balance sheet figures. Oracle Corp. has about $70.46 billion in cash on hand and securities or $17.26 per share and a total debt of $60.8 billion. The balance sheet is highly leveraged because the total debt-to-equity ratio is 127% towards an industry median of 27%. However, the trailing 12-month interest coverage ratio, which measures the company’s ability in paying interest expenses on the debt outstanding, is 7.18. Investors use a higher than 1.5 threshold to screen for good stocks. GuruFocus gives Oracle a financial strength rating of 6 out of 10.
For the 52-weeks through June 15 the stock gained 1% to $46.28 per share. The 52-week range is $44.04 to $53.48 per share.
Oracle is trading below the 200 and 100-SMA lines and is mimicking the 50-SMA line.
As of June 15, Oracle has a price-book ratio of 3.95 versus an industry average of 3.25, a price-sales ratio of 4.97 versus an industry average of 2.57 and a price-earnings ratio of 56.43 versus an industry average of 27.61.
According to GuruFocus’ Peter Lynch chart, Oracle Corp. is trading above the Peter Lynch Earnings Line (P/E = 15) of $12.3 per share and the Price at Med P/E without NRI (P/E = 22.47) of $18.4 per share.
Disclosure: No positions in Oracle.
