Oracle first quarter report expected to show flat sales, say analysts

Oracle is slated to report its first fiscal quarter results on Thursday but experts think the company does not pack a punch this time around and the sales will have a flat growth.

Analysts, in a poll conducted by Thomson Reuters, have the opinion that the enterprise solutions provider is not going to report any growth in sales. Their best shot in a growing sales figure is 0.3 percent increase.

“Our proprietary global survey of 50 resellers showed seasonal and general weakness,” UBS Securities analyst Brent Thill said in a Sept. 5 report. “European value-added resellers were weaker than U.S. ones. This suggests in-line results.”

If that is the case, it should not come as a surprise to the investors as the company has been showing little to no growth in sales. Last quarter the sales rose 1.3 percent, while the Q3 and Q2 reported 2.9 and 1.9 percent growth.

Oracle sells enterprise software solutions to corporate entities, while Sun Microsystems, now a part of Oracle empire, sells hardware. The sales had been promising for the company the aforesaid industry but the dwindling economy has been one big hurdle.

“Overall, our checks pointed to essentially in-line new software licenses and maintenance results while we believe hardware could also be in-line,” Robert Breza with RBC Capital Markets wrote.

Though the experts do not expect the company to show any surprises this year but its core database software business might be able to breathe some life in the stale report.

“That is the sort of bread and butter, the cash flow engine, and I don’t think anybody is expecting a blow-out performance from that part of the business,” he said. “But as long as that part can grow in the low- to mid-single digits I think the stock can hold firm.”

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Posted by Usman Khalid on Sep 20 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.