https://smartmoneypress.com/wp-content/uploads/2017/09/104642905-3ED5-SA-Mini-080917.600x400.jpg

Should You Buy Oracle After Negative Guidance?

September 15, 2017
141 Shares 2,448 Views

After posting some after-trading gains on its earnings, Oracle quickly receded this morning after CNBC reported that the company’s guidance for the next quarter would be below expectations.

In terms of guidance, the company expects to bring in 64-68 cents in earnings per share and 2-4 percent revenue growth — with 39-42 percent cloud revenue growth — in constant currency for the second quarter of the 2018 fiscal year. Analysts were expecting 68 cents in earnings per share on $9.49 billion in revenue, according to Thomson Reuters. Immediately after Oracle CEO Safra Catz gave the guidance, the company’s stock fell more than 5 percent below the closing price of $52.79 per share.

While these numbers may fall short of expectations, investors may be asking themselves if the stock itself is a worthy investment. Pressure has never been higher for Oracle executives than it is now. Senior executives will only receive options if the company “significantly grows its cloud business.” With their own money at stake, the directors of the company will likely work hard to correct their predictions for next quarter.

Oracle has been a solid investment for some time so jumping ship may not be the call. Stay up to date with the situation by following us on Facebook at Smart Money Press.

Read more at cnbc.com

You may be interested

Job Hiring is Picking Up as Employers and Consumers Gain Confidence
Economy
548 views
Economy
548 views

Job Hiring is Picking Up as Employers and Consumers Gain Confidence

Lamont J - March 29, 2021

The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…

Fed Could Maintain 0% Interest Rate Until 2024
Economy
489 views
Economy
489 views

Fed Could Maintain 0% Interest Rate Until 2024

Adam R - March 26, 2021

The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…

Supply Constraints Could Slow the Home Market
Economy
555 views
Economy
555 views

Supply Constraints Could Slow the Home Market

Becky H - March 25, 2021

Low inventory has been a constant in the home market for more than a year. The supply of existing and…