Oracle (ORCL) Stock – Medium Term Growth Possible

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For the 3 months ended November 30, 2020, Oracle Corporation announced financial results. Net profit under GAAP was $2.4 billion which rose +6 percent year-on-year, and were up +8 percent quarter-on-quarter basis. Diluted earnings per share of $0.80 increased by +16 percent year on year and was about +11 percent quarter on quarter.

The company’s revenue for the quarter was $9.8 billion which also came above +2% YoY and +5% QoQ, the GAAP operating margin rose to 37% against last year’s 33 percent rise and last quarter’s increase of 34 percent. Owing to outperforming sales performance, the GAAP operating margin showed a positive trend compared to a year ago.

Larry Ellison, Oracle Chairman and CTO, said The Gen2 cloud infrastructure attracts customers and increases revenue at a rate exceeding 100 percent per year,” The demand for second-generation cloud-based computing exceeds the plan, and the organization is opening new data centers. In 2020, Oracle opened 13 additional regional data centers, taking the total to 29 worldwide regional data centers. A quarterly cash dividend of $0.24 per share of outstanding common stock was announced by the board of directors. The dividend will be paid at the close of business on 7 January 2021 to registered shareholders with a payment date of 21 January 2021.

Oracle predicts diluted earnings per share in the range of $0.82 to $0.86 in its projections for the coming year. This is good news for the group, according to our estimates. The business shows good financial results, and the profitability improvement indicates high-quality sales growth and a strong market position that will enable the business to expand further.

Moreover the stock succeeded to performed though not impressively but up to a satisfactory level as it rose value by 20 percent over the past 6 month while the business added value of more than 16 percent to its stock since start of this year. At current levels, Oracle Corporation (ORCL) stock has a medium term growth margin of about 2 percent in hitting $63.31 mark, but has potential worth more than that.

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