Oracle Q4 2021 earnings recap
$Oracle Corp(ORCL.US) shares are down on Wednesday, after the software company reported fourth-quarter results that weren't seen as strong enough to justify a recent rally. Analysts also note the impact of higher capital expenditures.
Ratings
Citi (neutral, PT $80)
While the quarter featured "accelerating back-office cloud application growth and stable infrastructure performance, the biggest drivers of revenue upside were from lower-quality factors"
The report shows "growth, but at a less reasonable price," and the growth is coming alongside "significant increases in spending" that could weigh on operating margins
Oppenheimer (market perform)
While Oracle's outlook calls for an acceleration in growth, this will require higher capital expenditures
"Shares have priced in an acceleration of growth, but not necessarily the corresponding investments"
Jefferies (hold, PT to $80 from $75)
While the results were encouraging, they came against easy year-over-year comparisons and benefiting from seasonal strength
The stock can't sustain its rally on low single-digit growth
Adobe Q2 2021 earnings recap
$Adobe Inc(ADBE.US)$ analysts are positive on the software company after it reported second-quarter results that beat expectations and gave a profit forecast that was ahead of the consensus view. A number of Wall Street firms raised their price targets, writing that the results show broad-based strength.Shares up as much as 3.4%, with the stock at an intraday record
Ratings
Citi (neutral, PT $575)
The results "showed signs of building momentum," with accelerating revenue in the company’s Digital Experience group
"Despite some concerns around reopening trends, ADBE clearly delivered," although given the valuation, "the durability of growth should come back into focus"
Morgan Stanley (overweight, PT to $610 from $575)
The report "well illustrates why the stock sits atop the list of 'growth at a reasonable price' software names we find very attractive in software"
Positives in the Digital Media business "show building momentum in Adobe's core earnings engine"
Oppenheimer (outperform, PT to $600 from $550)
The results "show the company executing well against its strategy of offering a complete customer experience platform"
Given strong tailwinds, the valuation can hold up over the summer "as investors start looking forward to the seasonally stronger second half"
Click here to check out: Earnings Calendar for June; Earnings preview; Earnings Highlights
Source: Bloomberg
Editor: Mia