Cantor Fitzgerald analyst Brian White (Buy, $50 PT)
"Last night, Oracle reported 4Q:FY14 results that were slightly below our estimates; however, the company's 1Q:FY15 guidance is largely in-line with our projections. The company emphasized a big push into the cloud in FY:15 with a "laser focus" on becoming the #1 player within Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) in the future. With the early stage ramp of a database cycle with 12c and new initiatives in the cloud that we expect to hear more about at next week's Cloud Forum, we continue to believe the stock has attractive upside over the next year, as reflected in our $50.00 price target."
Canaccord Genuity analyst Richard Davis (Buy, $48 PT)
"Numbers wise, Oracle posted a 3% upside to operating cash flow. Inasmuch as Oracle does not pay a tolling fee for its database to itself, Oracle will have more pricing cushion with
which to compete. Perhaps more importantly, the breakout of cloud will make it financially less disruptive for Oracle to accelerate the pace of tuckin cloud acquisitions."
BMO Capital Markets analyst Joel Fishbein (Outperform, $45 PT)
"Fourth-quarter softness appears to be the result of thousands cuts-some deal slippage on mixed sales execution, some potential pausing in front of the 12c launch, some weakness in APAC and headwinds related to currency devaluation in South America, some hardware deal push-outs, some incremental headwinds to license as mix to subscription accelerates-but overall the story is unchanged, in our view. Transitions of this scale take time and some pains and lose ends may persist but most of the heavy lifting regarding the SaaS business is done. New product releases across the board should be a tailwind to growth and we remain optimistic regarding the company's positioning."
Oppenheimer analyst Brian Schwartz (Perform, No PT)
"Oracle reported soft 4Q results for the second straight year partially owing to delayed revenue recognition from selling more cloud software than licenses. This trend aligns with our view that market fundamentals for SaaS adoption have never been better from business desires to replatform apps. Additionally, FY EPS growth came in below 10% for the second straight year, a key growth target for investors, despite easier comparisons and better macro. This result pushes ORCL's 3-year EPS CAGR also below 10%."
Sterne Agee analyst Robert Breza (Neutral, $41 PT)
"ORCL put out a disappointing Q4/FY14 that may leave investors cautious about future results as Q1/FY15 outlook, roughly in line with consensus, came short of offsetting the miss in the top and the bottom lines and may remind investors of Q3. We continue to believe ORCL's new 12c database release with in-memory and multi-tenancy capabilities will allow for an execution in-line with guidance, and therefore maintain Neutral Rating and $41 PT."
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-- Written by Chris Ciaccia in New York
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