ORCL

Red Hat’s Second Quarter Outlook Misses the Mark

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Open-source enterprise software-maker Red Hat (RHT) reported results for its first quarter of fiscal year 2013. The firm’s performance exceeded expectations, with earnings coming in at $0.30 per share compared to the Street consensus of $0.27 per share. Revenue came in at $314.7 million, up 19% compared to the first quarter of 2012, and slightly ahead of the Street’s expectations. However, Red Hat reported an outlook below both its previously-issued guidance and the Street’s expectations. The firm guided to second-quarter earnings of $0.28-$0.29 per share, which is roughly in-line with the Street consensus of $0.29. Second-quarter revenue is expected to come in the range of $320-$322 million, well below the consensus of $330.8 million. For the full-year, Red Hat lowered its … Read more

Oracle Posts Better-Than-Expected Fiscal 2012 Third-Quarter Results

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Oracle (ORCL) posted better-than-expected fiscal 2012 third-quarter results after the close Tuesday. We continue to believe the shares have valuation upside and are sticking with our $38 per share fair value estimate. Total revenues advanced 3% thanks to roughly a 7% increase in new software license revenues and an 8% jump in software license updates and product support sales. Hardware systems products revenue fell 16%, however. Non-GAAP operating income advanced 8% to $4.2 billion, while non-GAAP net income jumped 13% from the same period a year ago. Non-GAAP earnings per share increased 15%, to $0.62, blowing by consensus expectations of $0.56 per share. On its conference call, Oracle said that it thinks non-GAAP, constant-currency revenue for the current quarter will … Read more

Oracle Issues Poor Fiscal Second-Quarter Results; Customers Delay Purchases

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Oracle (ORCL) posted disappointing fiscal second-quarter results that sent the shares tumbling today. The news follows Red Hat’s (RHT) lower-than-expected outlook earlier this week and casts a shadow over the strength of the software space during the calendar fourth quarter and into next year. Though we will be revisiting our $38 per share fair value estimate for Oracle based on management’s poor outlook, we don’t expect a material change it. Oracle’s revenue jumped 2% as growth in software license sales and software license updates/product support revenues offset nearly a 14% decline in hardware systems products revenues, the latter caused by a transition to T4 processor-based products. The company noted that new software license revenue was impacted by “additional approvals required … Read more

Oracle’s Fiscal First-Quarter Results Reveal Strength in Software Sales, Europe

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Oracle (ORCL) posted strong fiscal first-quarter results Tuesday that showed significant growth in new software licenses and product support (about two thirds of revenue) and some weakness in hardware systems products revenues (about 20% of its top line). Services revenue, accounting for the balance, increased nicely and remained steady at about 14% of sales. We are maintaining our $38 fair value estimate and make available our 16-page report here. Oracle’s top-line advanced at a low double-digit pace, while the firm’s GAAP operating income increased an impressive 40%, translating to a 36% increase in net income and a 46% jump in operating cash flow. The significant profitability expansion was driven by a refocus on its high-end server business – Exadata, Exalogic, … Read more

IBM Puts up Fantastic Second-Quarter Results

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International Business Machines (IBM) posted strong second-quarter results Monday. The firm’s top-line increased 12% (5% adjusting for currency), while net income advanced 8% from the same period a year ago. The firm indicated that hardware, software and services revenue grew at a double-digit pace, and the company raised its full year 2011 operating earnings per share guidance to at least $13.25 from at least $13.15 previously. Revenue from markets IBM categorizes as growth now represent about 22% of its top line, with particular strength from the BRIC countries – Brazil, Russia, India, and China – which advanced over 20% in the period. The firm’s services revenue continued at a nice pace of expansion, with backlog jumping $15 billion from the … Read more

Understanding Share Buybacks

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Image Source: Mike Mozart This article is for educational purposes only and may not reflect our updated opinion on any companies mentioned. Rule of Thumb: If share buybacks are completed at a price level that is under a firm’s fair value estimate, the activity can be considered value-creating. If share buybacks are completed at a price level that is above a firm’s fair value estimate, they can be considered value-destroying. By Brian Nelson, CFA Share buybacks are not always a “good thing.” The general rule of thumb may be that share buybacks reveal that management believes its stock is underpriced and that the executive team thinks there may be no better investment opportunities out there with firm money than its very own company … Read more

Dividend Increases/Decreases for the Week of March 10

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Below we provide a list of firms that raised their dividends during the week ending March 10. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          American Assets Trust (AAT): now $0.33 per share quarterly dividend, was $0.32. American Express (AXP): now $0.60 per share quarterly dividend, was $0.52. Colgate-Palmolive (CL): now $0.48 per share quarterly dividend, was $0.47. Dick’s Sporting Goods (DKS): now $1.00 per share quarterly dividend, was $0.49. Dime Community Bancshares (DCOM): now $0.25 per share quarterly dividend, was $0.24. Hammond Power Solutions (HMDPF): now CAD 0.125 … Read more

What Really Is the “S” in ESG Investing

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By Valuentum Analysts Back in October, we explored “Putting the Environmental in ESG” investing. In this article, let’s dig deep into the second consideration of ESG (Environmental, Social, and Governance) investing — “Social.” While there has been greater attention paid to the social impact of companies in recent years–from the industries they operate in to the ways they impact their communities–this concept is definitely not a new trend. Investors have always cared about the impact of the companies they invest in. In the past, this idea has been encapsulated in the phrase Socially Responsible Investing (SRI), which is essentially the practice of seeking out companies that have a positive social impact on society. Some even put the earliest origins of … Read more