Key Takeaways
- Oracle is scheduled to report fiscal third-quarter earnings after the market closes Monday.
- A slight majority of analysts tracked by Visible Alpha have a “buy” rating for the cloud services company’s stock.
- One analyst said commentary from management on the AI joint venture Stargate could outweigh everything else on Oracle’s earnings call.
Oracle (ORCL) is set to report fiscal third-quarter results after the market closes Monday, with analysts watching for revenue growth and possible commentary on the company’s Stargate joint venture.
Of the 14 analysts covering the stock tracked by Visible Alpha, eight have “buy” or equivalent ratings, with six giving the stock a “hold” rating. Their consensus price target of near $194 would suggest about 25% upside from Friday’s close.
The cloud services giant is expected to report fiscal first-quarter revenue of $14.38 billion, up around 8% year-over-year. Adjusted earnings are expected to land at $4.29 billion, or $1.49 per share, up from $3.98 billion, or $1.41 per share, a year earlier.
UBS analysts said they will be watching for commentary on Stargate, Oracle’s joint venture with OpenAI and SoftBank. Information on the up to $500 billion artificial intelligence infrastructure project “has the potential to outweigh everything else” from Oracle’s earnings call, the analysts said Thursday. UBS maintained a “buy” rating and $210 price target.
“Sentiment has been incrementally more positive post the [Jan. 21] Stargate announcement,” Jefferies analysts said Thursday, reiterating a price target of $220.
Shares of Oracle are down this year but up about 35% over the past 12 months. The stock rose nearly 3% on Friday.
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