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Software giant Oracle reports fiscal third quarter earnings after the close Monday. $ORCL faces competition on two main fronts with $AMZN for Cloud infrastructure and $CRM for platform database revenue.

Oracle Cloud

Consensus Earnings Expectations

Analysts estimate  EPS to grow 4% to 72 cents on revenue rising 6% to $9.77 billion.

Barclay's Raimo Lenschow expects Oracle to deliver a solid Q3 based on the overall healthy IT spending environment, positive VAR survey results and an achievable setup. We have seen other large-cap software vendors like Microsoft and Vmware benefit from the robust IT spending levels, and Oracle should see similar tailwinds. While some investors remain skeptical on the name given the less than ideal cloud results in 1H FY18, Raimo remains positive due to the healthy LT fundamentals and current undemanding valuation levels. (Oracle Corp.: Q3 Preview: Beat in the Cards, 12 Mar 2018)

 

Last Earnings Breakdown

Cloud Segment

Oracle's Cloud revenue makes up 16% of the company's overall revenue at $1.5Bil, up 44% YoY. Of that sum, $1.1Bil was attributed to Software as a Service and $396MM to Platform- and Infrastructure-as-a-Service, up 55% and 21%, respectively.

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Source: Oracle, Alpha Street

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