Concerns are growing about Oracle (ORCL). In the latest in a series of cautious Street comments on its upcoming earnings report, Pacific Crest’s Brendan Barnicle Monday morning warned that revenues for the fiscal first quarter ended August could come in short of Street expectations. He says that the quarter closed weaker than he expected. Barnicle says that the company likely to have a 2% headwind from currency in the quarter, after a 6% benefit last quarter.
Barnicle says the weakness reflects “nothing more than seasonality and currency,” and there has been no change in the company’s business fundamentally. But he does say the company faces a difficult comparison with the year-earlier quarter. “Our contacts report that the pipeline remains solid for Q2, and management has not demonstrated an excessive reaction to Q1,” he writes. “Nevertheless, Q1 is likely to be lackluster, at best, and Q2 guidance is also likely to be at best in line with current expectations.”
Barnicle trimmed his revenue estimate for Q1 to $5.44 billion from $5.52 billion; the Street is at $5.45 billion. For Q2, he goes to $6.4 billion, from $6.47 billion. For the full fiscal year ending May 2009, his EPS estimate slips to $1.56 from $1.57; for fiscal 2010 he goes to $1.85, from $1.88.
Oracle will report earnings on September 18.
Oracle closed Monday down 81 cents, or 4%, to $19.26.
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