Oracle Corporation (ORCL): Will The Growth last?

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.

Oracle (NYSE:ORCL) Past Future Earnings Jul 27th 17

Oracle (NYSE:ORCL) Past Future Earnings Jul 27th 17


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.

Oracle (NYSE:ORCL) Future Profit Jul 27th 17

Oracle (NYSE:ORCL) Future Profit Jul 27th 17

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.

Oracle (NYSE:ORCL) Growth In Earnings Jul 27th 17

Oracle (NYSE:ORCL) Growth In Earnings Jul 27th 17

Conclusion

ORCL’s future could have been more resilient, given its robust performance in the past few years. Imminent headwinds or strains with maintaining high earnings growth But in order to properly assess the opportunity here, we also need to evaluate whether the stock has been over-penalized by the relatively negative sentiment. Is ORCL an undervalued gem? Let’s find out in this free analysis report. If you are not interested in ORCL anymore, you can use our free platform to see my list of over 150 other stocks with a high growth potential.