Oracle is expected to release its first-quarter fiscal revenue report following Monday's market close.
Oracle Stock (ORCL) Earnings Projection
Analysts surveyed by FactSet predict the cloud software supplier will report a $2.65 billion profit for all three months ended August 31. That represents an increase over the $2.42 billion for the exact time last year.
If one takes out one-time expenses, Oracle is predicted to report $1.33 per share in earnings. It is anticipated that revenue will increase from $12.45 billion to $13.23 billion in the same period last year.
Oracle Earnings Review
Oracle stated that its net income for the most recent fiscal year, which ended on May 31, increased 39% year over year to $11.8 billion. This was slightly less than the trailing four quarters (T4Q) FCF of $12.358 billion from the previous quarter, as observed in the table below.
Yet increased capital expenditures accounted for the majority of the decline. However, its $11.8 billion in free cash flow (FCF) for the most recent full year accounted for 22.3% of the company's $52.96 billion in earnings.
Analysts Projection On ORCL
Analysts predict that revenue will increase dramatically throughout the next two fiscal years. According to Seeking Alpha's poll of 29 analysts, revenue for the fiscal year ending in May 2025 is expected to average $57.92 billion, representing an increase of +9.365% over the previous year's $53 billion. Furthermore, they project $64.26 billion in revenue for the upcoming year, translating into a median run rate of slightly more than $61 billion ($61.09 b) throughout the following calendar year.
Implementing a 22.3% FCF financing to this revenue estimate thus yields an anticipated free cash flow of $13.62 billion. Thus, the company's free cash flow (FCF) could increase by more than 15.35% based on the $11.8 billion trailing cash.
