Oracle Corporation ($ORCL) Earnings (Q1 FY23)

 Oracle Corporation ($ORCL) Earnings and Opinion:


Oracle is a company in the Technology sector and operates in the Software-Infrastructure industry. The company offers products and services that address enterprise information technology environments worldwide. Oracle was founded in 1977 and is currently headquartered in Austin, Texas. The company made its IPO on March 12, 1986. 

Oracle Earnings Results:

  • Revenues of $11.45B beating expectations of $11.38B
  • Operating Profit of $4.48B beating expectations of $4.42B
  • Adjusted EPS of $1.03 missing expectations of $1.07
  • FCF of $5.37B beating expectations of $4.66B
Opinion: 
Oracle is currently failing to find direction right now, after reporting earnings this afternoon. The stock is holding steady right now, as results looked pretty well, but the guidance that was given on the call was lower than expected. The claim the profit forecast that came in lower to a strengthening dollar against foreign currencies. The revenues jumped on a YOY basis, which is stuff you like to see. Free Cash Flow also looked promising as well. The Cloud business seems to be thriving for them, as they announced that MYSQL HeatWave database will now be offered on Amazon's cloud. As far as valuation goes, the P/E ratio is at 30.60, which is high. the P/S ratio is at 4.84, which is a wee bit high. The ROE is out of the room, sitting at 7301.09%. The revenue growth looks to be growing, especially going into next year. The current ratio sits at 1.62, which is a comfortable position, and the debt outweighs the cash by over $50B. In my opinion, there is limited upside with Oracle right now. The deal that they struck with Amazon for the cloud thing is spectacular. Something tells me that the growth of Oracle looks promising in the short term. I am biased on Tech too, and I think a company like Oracle, who has been around for a while, can deserve a spot in a portfolio. I am long Oracle.

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