The chart below depicts the company’s performance over the last eight quarters. The company has a 52-week high of $46.705.
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Oracle Corp.is making progress in shifting to the cloud, but the rising value of the US dollar is getting in the way.
New software licenses were down 16 per cent compared to the year-ago quarter, and on-premise software revenues were down 4 per cent. Total hardware revenues fell by 3 per cent and hardware support was down 5 per cent.
We are still on target to book between $1.5 and $2.0 billion of new SaaS and PaaS business this fiscal year. However, it forecast revenue to range between a fall of 2 percent to growth of 1 percent in the current quarter.
But, analysts have said Oracle’s cloud software business has not been growing fast enough to make up for declines in the 38-year-old company’s licensed software business due to reasons ranging from slow customer adoption to tough competition.
Zacks uses a simplified scale in order to more easily understand the analyst recommendations on stocks. Wunderlich set a $47.00 price objective on Oracle and gave the stock a “hold” rating in a research note on Saturday, June 20th. He said that a majority of these resellers outlined fair sequential sales trends that are in-line with projected targets.
With major investments in infrastructure behind it, Oracle said it expects profit margins from the cloud to double over the next several years. The stock presently has a consensus rating of “Buy” and an average price target of $46.24.
Analysts had forecast sales of $8.53 billion, according to Thompson Financial.
Oracle Corporation shares opened the most recent session at 37.81 and closed the trading day at 37.56. The company recently acquired Maxymiser- a cloud software provider for testing and personalizing online and mobile ad campaigns – for an undisclosed amount.
Total revenue declined to $8.45 billion from $8.6 billion a year earlier. Although the shift will certainly affect the bottom line in the near-term, it is likely to pay off in the long run.
Those twin themes emerged Wednesday in Oracle’s results for the latest quarter and guidance for the current period that was lower than Wall Street expected.
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Oracle, which has built its business by selling corporate databases and other applications, owns the Solaris operating system and Java, a widely used software-programming platform, as part of its 2009 acquisition of Sun Microsystems.
