Analysts: Oracle is not doing well
C|Net | at | by Mike
The database software maker has been caught in a firestorm of late, given contract controversy with the state of California, stiff competition from IBM and Microsoft, and the need to close deals at the end of its fiscal fourth quarter ending May 31. Oracle had to resort to heavy discounting in the final weeks of the quarter, and analysts are betting that the company will take a revenue hit. While concerns about Oracle's quarter have been persistent for the last month, the Wall Street bandwagon of worry is filling up.
Other analysts have also voiced concerns about Oracle's quarter. Wachovia Securities analyst Jason Maynard said Oracle's fourth quarter ended on an "extremely sluggish note." Maynard cut his revenue estimate for Oracle to $2.45 billion from $2.72 billion. His earnings estimate for the fourth quarter was cut to 12 cents a share from 13 cents a share. Consensus estimates for Oracle have been falling in recent days. Oracle, which will report its fourth-quarter results June 18, is expected to report a profit of 12 cents a share on revenue of $2.6 billion, according to First Call.