Tech Stocks Hanging On To Moderate Gains

Technology stocks were recovering Friday from several days of declines earlier this week, with shares of tech companies in the S&P 500 increasing by nearly 0.4%.

In company news, Oracle (ORCL) retreated Friday after the enterprise software firm last night offered up projected revenue growth for its current financial reporting period trailing Wall Street estimates.

The company is expecting fiscal Q2 revenue for the three months ending in late November to rise between 2% to 4% over its $9.07 billion in revenue during the year-ago period. That works out to a range of $9.25 billion to $9.43 billion and lags the Capital IQ consensus by at least $60 million. It also sees non-GAAP Q2 net income coming in between $0.64 to $0.68 per share compared with the analyst mean looking for an adjusted $0.68 per share profit.

The mixed outlook upstaged better-than-expected Q1 results. Excluding one-time items, Oracle earned $0.62 per share during the three months ended Aug. 31, up from $0.55 per share during the same quarter last year and beating the Street view by $0.02 per share. Total revenue rose 7% over year-ago levels to $9.2 billion, also topping the $9.03 billion consensus.

Analysts have remained moderately bullish for Oracle stock following the Q1 results and Q2 outlook. Jefferies Friday raised its price target for the company’s shares by $1 to $61 each while also reiterating its Buy investment recommendation for the stock.

Leave a Comment