NEW YORK (TheStreet) -- Oracle Corporation (ORCL), the world’s second-largest software company, will report fourth-quarter and full-year fiscal 2015 earnings results Wednesday after the closing bell. And investors looking for a solid long-term value play should consider taking a position in ORCL stock ahead of the report, especially given the strong rate at which Oracle's cloud transition continues to accelerate.
With better-than-expected results already released from cloud giant Salesforce.com (CRM), which Oracle was rumored to be interested in as a buyout candidate, investors are eager to see if Oracle can respond, especially after Oracle boasted it can capitalize if someone else were to acquire Salesforce.com.
For the quarter that ended May, the average analyst estimate calls for 87 cents in earnings per share on revenue of $10.96 billion, marking year-over-year declines of 5% and 3%, respectively. For the full year, earnings are projected to be flat at $2.87 per share, while revenue of $38.5 billion is expected to be up less than 1%.
Known for its breakthroughs in databases and software that analyzes business intelligence, Oracle, headquartered in Redwood City, Calif., has made the cloud its top priority, assuring shareholders it would become a central player in cloud-based services. And the company continues to make good on that promise.
As evidenced by the 30% increase in third-quarter cloud applications and application platform revenue, Oracle is no longer being left behind by presumed nimbler rivals Workday (WDAY) and Salesforce.com. Better still, when combining the 28% year-over-year jump in third-quarter cloud infrastructure revenue, Oracle now has the offsetting factors in place to lessen its dependency on legacy hardware, while also migrating from how its sells software.