What should you expect from the upcoming earnings call by Oracle?

By:
on Mar 7, 2022
  • Oracle is expected to report positive EPS after settling contingent liabilities in the last quarter.
  • The share price could continue with a downward trend.
  • The potential support level is at $54.

Oracle Corporation (NYSE:ORCL) will announce Q3 results on March 10. The results come in the wake of increased geopolitical risk to global capital markets. For Oracle, the risk is also characterized by declining business.

The hardware segment experienced a decline of 9% as the services grew by 7%. The licensing business for cloud-based and on-premise software solutions remains strong and the company’s main source of revenue.

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Investors expect Oracle to report positive EPS and growth in dividends, emerging from the $0.46 per share loss that the company recorded in the last quarter.

The previous quarter’s loss resulted from contingent liabilities from a 10-year suit by a former employee. That having been settled, investors will be checking to see how the company performs.

Oracle downward pressure on the price to persist until $54

Source – TradingView

In the equity markets, Oracle signals a persistent decline as the 20-day moving average moves to cut below the 50-day moving average. MA 10 is already trading below MA 50. The MACD at -3.21 trends below the signal, with the divergence having expanded to -2.06.

The double bearish trend confirmation by the MACD line and histogram are indications that downward momentum will continue in the foreseeable future. Investors should consider waiting for the share to provide a signal that it has found a bottom. This analysis projects that the share price could decline to support at $54.

Summary

Oracle will announce Q3 results on March 10. The company recorded a per-share loss of $0.46 in the last quarter and is expected to reverse that trend in EPS. The downward momentum on the share price is expected to persist.

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