Shares of tech firm Oracle (NYSE:ORCL) gained in today’s trading as investors await its Q4 earnings results on June 11 after the market closes. Analysts are expecting earnings per share to come in at $1.65 on revenue of $14.57 billion. This equates to a 1.2% year-over-year decrease in EPS and a 5.2% revenue increase, according to TipRanks’ data.
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Ideally, earnings per share should grow faster than revenue as this demonstrates a high degree of operating and financial leverage in the business. Nevertheless, it’s worth noting that Oracle has beaten earnings estimates seven times during the past eight quarters. Therefore, it’s possible that EPS growth will outpace revenue growth.
Options Traders Anticipate a Fairly Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a fairly large 7.51% move in either direction.
Is Oracle a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ORCL stock based on 11 Buys, 10 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 19% rally in its share price over the past year, the average ORCL price target of $137.95 per share implies 9.55% upside potential.
