Published: Fri, March 17, 2017
Economy | By Melissa Porter

BMO Capital Markets Indicates Potential 11.5% Increase In Shares Of Oracle Corporation

BMO Capital Markets Indicates Potential 11.5% Increase In Shares Of Oracle Corporation

Hotchkis & Wiley Capital Management LLC boosted its position in Oracle by 18.7% in the fourth quarter. The enterprise software provider reported $0.69 earnings per share for the quarter, topping the Zacks' consensus estimate of $0.62 by $0.07. The company provided EPS guidance of $0.78-0.82 for the period, compared to the Thomson Reuters consensus EPS estimate of $0.78. Oracle has an average rating of "Buy" and an average target price of $44.84.

Oracle CEO Safra Catz said: "Our new, large, fast growing, high-margin cloud businesses are driving Oracle's total revenue and earnings up and improving almost every important non-GAAP business metric you care to inspect". Rather he focused on the company's relatively smaller IaaS business, which generated only $178 million last quarter and grew only 2 percent over the previous year. Equities analysts anticipate that Oracle Co. will post $2.56 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 26th.

To accommodate long-term intention, the firm has diverse dividend or yield record, ORCL has Dividend Yield of 1.39% and experts calculate Return on Investment of 11.20%.

On an annualised non-GAAP basis, Oracle's total cloud business has reached the $5 bn mark and the company's SaaS and PaaS businesses increased at the rate of 85% in Q3. Oracle's dividend payout ratio (DPR) is presently 28.99%. If you are reading this piece on another publication, it was illegally stolen and republished in violation of United States & global copyright and trademark legislation. The correct version of this story can be read at

In related news, Director Naomi O. Seligman sold 45,000 shares of the firm's stock in a transaction on Wednesday, December 21st. The shares were sold at an average price of $38.72, for a total value of $1,742,400.00. Following the sale, the director now owns 52,654 shares in the company, valued at approximately $2,038,762.88. Also, Director Hector Garcia-Molina sold 3,750 shares of the stock in a transaction that occurred on Tuesday, January 17th. The shares were sold at an average price of $40.95, for a total transaction of $153,562.50. Insiders have sold 52,500 shares of company stock valued at $2,042,550 over the last ninety days.

Oracle said its infrastructure-as-a-service business, which competes with much larger rivals such as Inc.'s AMZN, +0.00% Amazon Web Services and Microsoft Corp.'s MSFT, -0.17% Azure, will likely outpace its other revenue services and become the leading revenue generator of its cloud business, though it didn't provide a time frame on when it might overtake everything else. That's probably not surprising, given the former's decision to invest heavily in its infrastructure-as-a-service (IaaS) business as a way to offset declines in revenues for its licensed software business.

However, Ellison chose not to focus on Oracle's software-as-a-service (SaaS) business or its platform-as-a-service (PaaS) business, which together represent the bulk of its revenues. That is a 27% increase and not something you want to see from a growth company.

Like this: