Oracle Earnings Call Analysis: Insights Ahead of Oracle Earnings

Oracle has been in the news this week after the surprising departure of senior technology executive Thomas Kurian, caused by what is reportedly a disagreement over Oracle's strategy in Cloud. This might put a brighter spotlight on the 9/17 Oracle earnings call, so in preparation we took a deeper look through the Amenity Viewer to identify trends and potential hot button issues.

We focused on recent software earnings calls, which have been mixed, and reviewed the June Oracle earnings call, which looked surprisingly solid through the lens of the Viewer.  We expect Cloud strategy to take center stage, while keeping an eye on the magnitude of FX headwinds.

Please note: This in no way represents investment advice. All transcript text provided by S&P Global Market Intelligence.

Recent Trends in the Software Sector

Prior to CRM's earnings release on 8/29, we highlighted a trend in the Amenity Score showing solid results in the software sector, but generally less positive vs prior quarters.  That trend has since continued, highlighted by disappointments from Workday and Guidewire.  

A common theme is FX headwind, which is also likely to apply to Oracle:

Workday: "We also had very difficult comps the first half of last year, so that impacted the backlog revenue growth.  And we saw some headwinds in Q2 from both duration and FX."

Adobe: "From a quarter-over-quarter currency perspective, FX decreased revenue by $13.8 million."  

Salesforce: "Moving on to guidance, let me briefly touch on the FX environment.  As I mentioned previously, we experienced a sequential FX headwind to revenues, and we continue to see some movements in rates.  In context, we are now anticipating an FX headwind to revenue of approximately $75 to $100 million for the remainder of the year.  Despite this FX headwind, we are raising our full year 2019 revenue guidance by $50 million."  

Surprisingly, Oracle's June earnings call was relatively clean

Overall puts and Takes from Oracle's June earnings call

  • The Viewer identified fewer positive Financial comments and also fewer positive Product comments.  
  • importantly, there were also a lack of significant clusters of negatives, as shown below.  This includes just 2 Deception events vs 11 and 10 in the March and December quarters, respectively.

Join the Amenity Viewer Beta Program today to analyze earnings call transcripts that enable you to spot outliers, identify critical insights, and understand key drivers.

Transcript text provided by S&P Global Market Intelligence. Copyright ©2018. All rights reserved.

October 16, 2019

Earnings Preview: Netflix Shed First Blood in Streaming Wars — What's Next?

Ahead of Netflix's 3Q19 earnings we took a look with the Amenity NLP toolkit to paint an objective picture of the company’s storyboard and found a drop off in positivity around key financial commentary and elevated deception. In their 3Q19 earnings call later today, we expect eyes to be fixated on screens when we get another commercial-free report from the company.
October 15, 2019

3Q19 Earnings: Financials Up First, Margins Out Front

Earnings kick off this week with Financials posting an early first round of results. In a lower interest rate environment, we’re conscious that some banks may be feeling the squeeze on net interest margins. To baseline analyst and investor expectations, we used Amenity’s NLP tools to examine margin-related commentary from the last round of earnings calls for each of the Financials reporting this week.
October 14, 2019

3Q19 Earnings Preview: Margins in Focus, Trick or Treat?

Third quarter earnings kick off this week with expectations of a single-digit decline in S&P 500 margins after slight contractions over the last two quarters. To set the stage for a busy earnings season, we used Amenity’s NLP models and text analytics tools to look closely at how public companies spoke about margins on earnings calls last quarter.
September 18, 2019

Sentiment Analysis: Updated Regional Bank Uncertainty Ahead of Fed Rate Decision

We follow up on our regional banks white paper, applying our NLP platform to the full set of earnings calls from regional banks this quarter to explore the state of uncertainty before an expected rate cut on September 18th. Our rationale for close scrutiny of regional bank earnings calls holds true since our last publication as we find deceptive commentary indicating there may be underlying uncertainty regarding headwinds to net interest margins.

Stay Informed: Join Our Newsletter

Keep up to date with our analyses and how we're making changes.