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Investing in Oracle (ORCL)? Don't Miss Assessing Its International Revenue Trends
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Did you analyze how Oracle (ORCL - Free Report) fared in its international operations for the quarter ending August 2024? Given the widespread global presence of this software maker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
While delving into ORCL's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter stood at $13.31 billion, increasing 6.9% year over year. Now, let's delve into ORCL's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Dive into ORCL's International Revenue Trends
Europe, Middle East and Africa accounted for 24.3% of the company's total revenue during the quarter, translating to $3.23 billion. Revenues from this region represented a surprise of -1.19%, with Wall Street analysts collectively expecting $3.27 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe, Middle East and Africa contributed $3.54 billion (24.8%) and $3.01 billion (24.1%) to the total revenue, respectively.
During the quarter, Asia-Pacific contributed $1.71 billion in revenue, making up 12.8% of the total revenue. When compared to the consensus estimate of $1.69 billion, this meant a surprise of +1.23%. Looking back, Asia-Pacific contributed $1.8 billion, or 12.6%, in the previous quarter, and $1.61 billion, or 12.9%, in the same quarter of the previous year.
Prospective Revenues in International Markets
It is projected by analysts on Wall Street that Oracle will post revenues of $14.1 billion for the ongoing fiscal quarter, an increase of 8.9% from the year-ago quarter. The expected contributions from Europe, Middle East and Africa and Asia-Pacific to this revenue are 24.5% and 12.6%, translating into $3.45 billion and $1.78 billion, respectively.
Analysts expect the company to report a total annual revenue of $57.91 billion for the full year, marking an increase of 9.3% compared to last year. The expected revenue contributions from Europe, Middle East and Africa and Asia-Pacific are projected to be 24.6% ($14.21 billion) and 12.6% ($7.31 billion) of the total revenue, in that order.
Closing Remarks
Relying on international markets for revenues, Oracle faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Assessing Oracle's Stock Price Movement in Recent Times
Over the past month, the stock has gained 17.9% versus the Zacks S&P 500 composite's 3.7% increase. The Zacks Computer and Technology sector, of which Oracle is a part, has risen 1.6% over the same period. The company's shares have increased 14.5% over the past three months compared to the S&P 500's 3.9% increase. Over the same period, the sector has declined 2.5%.
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Investing in Oracle (ORCL)? Don't Miss Assessing Its International Revenue Trends
Did you analyze how Oracle (ORCL - Free Report) fared in its international operations for the quarter ending August 2024? Given the widespread global presence of this software maker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
While delving into ORCL's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter stood at $13.31 billion, increasing 6.9% year over year. Now, let's delve into ORCL's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Dive into ORCL's International Revenue Trends
Europe, Middle East and Africa accounted for 24.3% of the company's total revenue during the quarter, translating to $3.23 billion. Revenues from this region represented a surprise of -1.19%, with Wall Street analysts collectively expecting $3.27 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe, Middle East and Africa contributed $3.54 billion (24.8%) and $3.01 billion (24.1%) to the total revenue, respectively.
During the quarter, Asia-Pacific contributed $1.71 billion in revenue, making up 12.8% of the total revenue. When compared to the consensus estimate of $1.69 billion, this meant a surprise of +1.23%. Looking back, Asia-Pacific contributed $1.8 billion, or 12.6%, in the previous quarter, and $1.61 billion, or 12.9%, in the same quarter of the previous year.
Prospective Revenues in International Markets
It is projected by analysts on Wall Street that Oracle will post revenues of $14.1 billion for the ongoing fiscal quarter, an increase of 8.9% from the year-ago quarter. The expected contributions from Europe, Middle East and Africa and Asia-Pacific to this revenue are 24.5% and 12.6%, translating into $3.45 billion and $1.78 billion, respectively.Analysts expect the company to report a total annual revenue of $57.91 billion for the full year, marking an increase of 9.3% compared to last year. The expected revenue contributions from Europe, Middle East and Africa and Asia-Pacific are projected to be 24.6% ($14.21 billion) and 12.6% ($7.31 billion) of the total revenue, in that order.
Closing Remarks
Relying on international markets for revenues, Oracle faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
At the moment, Oracle has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Assessing Oracle's Stock Price Movement in Recent Times
Over the past month, the stock has gained 17.9% versus the Zacks S&P 500 composite's 3.7% increase. The Zacks Computer and Technology sector, of which Oracle is a part, has risen 1.6% over the same period. The company's shares have increased 14.5% over the past three months compared to the S&P 500's 3.9% increase. Over the same period, the sector has declined 2.5%.