Markets & Finance

Wachovia Cuts Oracle Rating


Oracle (ORCL) reported third quarter earnings per share of $0.09. Wachovia downgraded its investment recommendation on the shares to market perform from buy.

Analyst Jason Maynard says the third quarter results were below his original forecast. He notes that the company conceded it may be losing some market share in its applications business. Maynard thinks Oracle's customer relationship management (CRM) solutions business continues to struggle. He says Oracle cut fourth quarter guidance to $0.13-$0.14 EPS on a 25%-30% year-over-year decline in license revenue, given the state of the economy, competition, recent management changes, and lack of visibility. The analyst sees $0.41 fiscal 2002 (May) EPS and cut his $0.52 fiscal 2003 EPS estimate to $0.45. Given his revised fiscal 2003 estimate, Maynard believes the stock is currently fairly valued.


Hollywood Goes YouTube
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus