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Oracle Corp - Stock Quote ORCL

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Morningstar's Oracle Corp Stock Analysis

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Oracle’s Q3 and Outlook Fall Short of Our Expectations; Shares Overvalued Ahead of Cerner Deal

Julie Bhusal Sharma Equity Analyst

Analyst Note

| Julie Bhusal Sharma |

Oracle’s third quarter was marked by some bright spots--like in Oracle's Fusion cloud ERP and HCM offering--but ultimately came in as a disappointment. Oracle missed our top and bottom line expectations, with gross profit significantly contributing to the discrepancy. Coupled with results was the outlook for the upcoming fourth quarter, which was also underwhelming. Outlook assumed Cerner would be acquired after the upcoming fourth quarter. In our model, we assume the deal will close at the beginning of Oracle's fiscal 2023 and we continue to believe that the deal leaves much to be desired, with little synergies in sight. All considered, we are maintaining our fair value estimate for the narrow-moat stock at $63 per share. This leaves Oracle overvalued with shares trading at $76 in after hours.

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Oracle Corp's Company Profile

Business Description

Oracle provides database technology and enterprise resource planning, or ERP, software to enterprises around the world. Founded in 1977, Oracle pioneered the first commercial SQL-based relational database management system. Today, Oracle has 430,000 customers in 175 countries, supported by its base of 136,000 employees.

2300 Oracle Way
Austin, TX, 78741
T +1 737 867-1000
Sector Technology
Industry Software - Infrastructure
Most Recent Earnings Feb 28, 2022
Fiscal Year End May 31, 2022
Stock Type Slow Growth
Employees 132,000

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