Tag Archives: orcl

4 Technology Stocks With Cheap Free Cash Flow And On Long-Term Uptrend [Seeking Alpha]

Free cash flow is important for the company to pursue opportunities to enhance shareholder value, but it does not have to be expensive. In this article, four technology stocks with cheap free cash flow, which are also on the long-term uptrend, will be presented. They are Oracle Corporation (ORCL), Broadcom Corporation (BRCM), BMC Software, Inc. (BMC), and Cadence Design Systems Inc. (CDNS).

Oracle Corporation

Oracle, with a market cap of $158.41B, is a provider of enterprise software and computer hardware products and services, including databases, middleware and applications.

On March 25, 2013, Macquarie reiterated a neutral rating for ORCL with a price target of $36.00. Analysts currently have a mean target price of $37.72 for ORCL, suggesting 12.73% upside potential based on the closing price of $33.46 on April 12, 2013. Analysts, on average, are projecting an EPS of $0.88 with revenue of $11.14B for the current quarter ending in March, 2013.

Fundamentally, ORL has a high operating margin of 38.44% and the long-term EPS growth is expected to be 10.66% for the next five years. ORCL has a solid balance sheet with a total cash of $33.41B and a total debt of $19.75B. From the valuation perspective, ORCL offers a cheap free cash flow (P/FCF of 13.94) with a low Forward P/E of 11.42.

Technically, ORCL continues to be on the long-term uptrend since mid-November, 2012. ORCL had bounced back from its long-term support after it missed its earnings in the last quarter.

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Oracle Keeps Buying, Growing, And Upgrading [Seeking Alpha]

Oracle Corporation (ORCL) is a provider of enterprise software and computer hardware products and services, including databases, middleware and applications. ORCL has spent $38B on acquisitions since 2005 and an active acquisition program contributes to the fundamental component of Oracle’s overall strategy.

On March 13, 2013, Oracle announced its acquisition of Nimbula, a provider of private cloud infrastructure management software. As quoted, “Nimbula’s technology helps companies manage infrastructure resources to deliver service, quality and availability, as well as workloads in private and hybrid cloud environments. Nimbula’s product is complementary to Oracle, and is expected to be integrated with Oracle’s cloud offerings. The transaction is expected to close in the first half of 2013.” According to Jim Xavier from Silicon Valley Business Journal, Nimbula could help Oracle shore up a major weakness in its product portfolio. As quoted,

“Nimbula reportedly has a very solid software, and it’s got some big customers, notably Yandex, the Russian internet firm that is sometimes called the Google of Russia.”

On March 13, 2013, Canaccord Genuity upgraded ORCL from hold to buy with a price target of $42.00 (from $35.00). Analyst Richard Davis said the firm is set up well to gain 20% this year. He expects Oracle deliver 9 to 11 percent EPS growth this year and thinks its multiple relative to peers IBM (IBM) and SAP AG (SAP) can expand given its current 10 to 25 percent discount valuation.

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3 Large-Cap Stocks Benefited From Large Share Repurchases [Seeking Alpha]

Share repurchase reduces the number of shares outstanding for the corporation. In this article, three large-cap stocks, which were in the list of top 10 companies with the largest dollar-value share repurchases in the most recent quarter as of December, 2012, will be presented.

Name (Ticker) Sector Quarters Buybacks ($M) % Change in Shares (Qtr) Market Cap Beta Dividend Yield
Oracle Corp. (ORCL) IT $3,074 -1.5% 164.80B 1.10 0.69%
Procter & Gamble Co. (PG) Consumer Staples $2,891 -0.5% 209.08B 0.46 2.94%
Philip Morris International (PM) Consumer Staples $1,505 -1.0% 150.33B 0.86 3.78%

Source: FactSet Research Systems and Google Finance

Date: December 20, 2012

Oracle Corp.

Oracle Corporation (ORCL) is a provider of enterprise software and computer hardware products and services, including databases, middleware and applications. ORCL closed at $34.81 and was down 0.26% on February 15, 2013. ORCL had been trading in the range of $25.33-$36.31 in the past 52 weeks.

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Investors Can Sleep Well With These 3 Large-Cap Technology Stocks [Seeking Alpha]

Investors who are looking for technology stocks that offer strong cash flow, healthy balance sheet, and profitable margins with solid competitive edges can consider the following three companies: Oracle Corporation (ORCL), Cisco Systems, Inc. (CSCO) and Cognizant Technology Solutions Corp (CTSH).

Oracle Corporation

Oracle Corporation is a provider of enterprise software and computer hardware products and services, including databases, middleware and applications. Software license and product support is the most profitable segment of ORCL’s operation. ORCL closed at $34.56 with 1.54% loss on February 7, 2013. ORCL had been trading in the range of $25.3-$36.31 in the past 52 weeks. ORCL has a beta of 1.10.

In early February, ORCL announced the acquisition of Acme Packet Inc. (APKT) for $1.7B net of cash while the company is expanding into the networking equipment market long dominated by Cisco Systems Inc. Analysts believe Acme Packet is a good for ORCL because it expands existing ties with telecommunications providers, many of whom are already heavily dependent on Oracle’s business management software and database for running their internal operations, as reported by Reuters.

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Expecting More Analyst Upgrades For Oracle [Seeking Alpha]

Oracle Corporation (ORCL) is a provider of enterprise software and computer hardware products and services, including databases, middleware and applications. Software license and product support is the most profitable segment of ORCL’s operation and accounts for about 67% of total revenue. ORCL has spent $38 billion on acquisitions since 2005 and an active acquisition program contributes to the fundamental component of ORCL’s overall strategy. The long-term outlook for Oracle is promising as it had successfully anticipated the threat of cloud computing and will continue to supply and support its customers with technology and service upgrades.

Q2, 2013 Earnings Report

After the market closed on December 18, ORCL released its Q2, 2013 earnings report. The Q2, 2013 total revenue was up 3% to $9.1 billion. New software licenses and cloud software subscriptions revenue was up 17% to $2.4 billion. Software license updates and product support revenue was up 7% to $4.3 billion. Hardware systems products revenue was $734 million. GAAP operating income was up 12% to $3.5 billion, and GAAP operating margin was 38%. GAAP net income was up 18% to $2.6 billion, and GAAP EPS was $0.53, up 24% compared with last year, whereas GAAP operating cash flow was $13.5 billion, ttm. The non-GAAP operating income was $4.3 billion, and non-GAAP net income was $3.1 billion. The non-GAAP EPS was $0.64.

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