Oracle Corp has reported a 36% jump in net income to $1.8 billion for the three-month period ended August 31, 2011, on account of strong sales from its core software business.
In the year-ago period, the company had registered a net income of $1.35 billion.
The company's total revenues were up 12% vs. the year-ago period to $8.4 billion in Q1. The EPS of the company stood at 36 cents in the first quarter of FY12, up 34% compared to last year.
Oracle Corp. Valuation:
Based on trailing 12 months EPS of $1.8 USD the stock, at the current market price of $28.35 USD as on 20th Sep 2011, is available at a PE multiple of 15.75 times.
Based on current quarter run rate the company could do an EPS of $1.44 USD in FY-12 which discount the current market price by approximately 20 time. The PE multiple of 20 times based on forward year EPS appears a bit expensive, considering the global economic headwinds.
The 52 week range for the stock is 36.50 - 24.72
Oracle Corp Technical Chart:
The stock was in upward trending channel since second half of 2009 which got broken in May this year and the stock corrected sharply from the highs of $ 36.5 levels to $26 levels in the matter of 3 months.
Below $26 the stock could correct to $22 where it might find some kind of support.