Oracle Corporation (NYSE:ORCL) is expected to deliver a solid 18.94% in earnings growth per share over the next three years. With the recent EPS being $2.27, expected growth will push next year’s upcoming EPS to around $2.42. To assess the reasonability of ORCL’s earnings growth per share, we should look at its most recent growth rate delivered. View our latest analysis for Oracle
How is Oracle going to perform in the future?
Analysts covering ORCL are expecting a 18.9% increase in earnings in the three year’s time. This means that earnings per share are to rise to $2.75 levels. This will project the annual earnings to levels surpassing that seen in recent earnings updates.In the same period we are supposed to see the revenue grow from $37.73 Billion to $44.60 Billion in 2021 and net income is predicted to rise from $9.34 Billion to $14.26 Billion in 2020, roughly growing 1.5x. Given this future level of revenue and earnings, margins are expected to be extremely healthy.
Is this similar growth to the past?The past can be a helpful indicator for future performance. We can determine whether this level of expected growth is illustrative of future headwinds or whether the company continues to grapple with higher growth. he company delivered a growth rate of 4.92% over the past couple of years, which is indicative of a sustained level of growth – no surprises there for shareholders.This gives us conviction in analysts’ expectations as ORCL has already illustrated their ability to grow at this rate.