ORCL - Oracle Earnings Summary: Missed Estimates But RPO And Demand Look Robust

2024-06-17 06:50:00 ET

Summary

• Oracle reported their fiscal Q4 ’24 financial results after the bell last Tuesday, June 11th, 2024, and while the numbers weren’t great, the stock price reaction was notable.
• On a P/E basis, the stock looks fairly valued, with the other metrics indicating ORCL trading at 7x revenue, 20x and 32x cash flow and free cash flow (ex-cash), and with a 3% free cash flow yield.
• The ultimate question is can Oracle change its stripes from an on-premise database provider (the legacy business) to a cloud and now AI leader, which it has been transforming to for the last 15 years?

Oracle ( ORCL ) reported their fiscal Q4 ’24 financial results after the bell last Tuesday, June 11th, 2024, and while the numbers weren’t great (both revenue and EPS missed consensus estimates), the stock price reaction was notable, probably due to the growth in RPO (remaining performance obligation, which is likely a fancy term for backlog), and the deals with Google ([[GOOG]], [[GOOGL]]) and Open AI, around OCI or Oracle Cloud Infrastructure....

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