The market looks at employees, especially in sales as a cost. So does the two CEOs of Oracle. A cost... to be reconciled.
The company spent 1.98 billion trying to sell their products during the last quarter, with the result yielding a gross income of 7.64 billion.
What do you think Oracle spent 1.98 billion on exactly? A huge chunk of it... employee salaries and commissions. Wouldn't it be great if we could reduce that number significantly?
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Oracle Corporation recorded a total of 9.61 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.01% coming in sequential stages and their sales for the third quarter increasing by 0.01%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.98 billion trying to sell their products during the last quarter, with the result yielding a gross income of 7.64 billion. This allows shareholders to hold on to 3.39B with the revenue now reading 780 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.71 cents a share).
The market sees employees as a cost to be reduced. So if that employee cost were to be reduced faster than sales drop then the revenue retention per share increases.
https://finmercury.com/2019/05/20/something-to-watch-before-buying-oracle-corporation-orcl/