Oracle Expected to Post 'Strong' Q1 Results Despite Financing Overhang, Oppenheimer Says

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Oracle (ORCL) is expected to report "strong" fiscal Q1 results, with upside potential for Oracle Cloud Infrastructure growth and Remaining Performance Obligations conversions, Oppenheimer said in a Tuesday note.

The company is scheduled to report fiscal Q1 financial results on Thursday.

Oppenheimer expects revenue of $19.1 billion and adjusted earnings of $1.74 per share, up 18%.

The investment firm said the broader enterprise software group delivered a strong quarter on healthy demand, which bodes well for Oracle's cloud business. Oppenheimer said, however, that financing risk remains a meaningful overhang for Oracle that is unlikely to be resolved in fiscal Q1.

Analysts said that Oracle's five-year credit default swap recently approached record highs, indicating investor concerns around the company's capital commitments for data centers.

Oppenheimer retained its outperform rating on the stock, with a $275 price target.

Shares of Oracle were up nearly 4% in Tuesday afternoon trading.

Price: 164.72, Change: +5.94, Percent Change: +3.74

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