Oracle is positively surprising Wall Street with revenue growth expected to be even greater
Oracle announced new growth. Shares surged in double digits in overtime trading in the US. Business at Wacker Chemie is going better than expected. The management board announced higher profitability for the second quarter and the full year. In turn, Hornbach warned after the market closed. The profit forecast is no longer sustainable.
Asian trade is also in the red on Tuesday. The negative pace eases slightly during the session, but losses remain high, especially in China. On the other hand, there is a clear shift for the better in the futures market. Before the opening of the European pre-exchange, the DAX contract recorded an increase of 13,559 points (+ 1.02%).
The week started on Monday with deep losses that continued to increase. Frankfurt has taken over the weak sentiment from Asia and has followed this trend consistently. All German benchmarks ended up deep in the red. The loser of the day was SDAX, which fell by -4.00% to 12,558.03 points, followed closely by TecDAX, which fell by -3.91% to 2,902.38 points. MDAX fell by -3.57% to 27,742.35 points. Only the DAX showed some relative strength and ended the race with a daily loss of -2.43% to 13,427.03 points.
Same picture also on Wall Street. After Friday’s sharp losses before Wednesday’s Fed meeting, there was another sell-off. As in Europe, risk-on assets lost the most. The Nasdaq Composite index fell by -4.68% to 10,809.22 points. The S&P 500 index lost -3.88% to 3,749.63 points. On Wall Street, the defaults were also the best. The Dow Jones Industrial Average recorded the smallest loss, falling -2.79% to 30,516.74 points.
Oracle’s cloud business is booming
The Oracle (US68389X1054) gave a good perspective after market close. Cloud business revenues are expected to grow by up to 30% this fiscal year. Oracle is seeking to significantly increase this portion of the business and managed to achieve 19% growth to $ 2.9 billion in the fourth fiscal quarter. The board also announced that the $ 28 billion acquisition of Cerner should significantly accelerate Oracle’s growth in the healthcare sector. Including Cerner, revenue growth for the current quarter is expected to be 47%. Wall Street was pleasantly surprised with stocks soaring 15.04% to $ 73.68 in overtime trading.
Wacker Chemie with a strong business
The company in Wacker Chemie (DE000WCH8881) is going so well that the company is issuing its forecast for the second quarter ahead of schedule. After the trading day, the mind announced that with sales of EUR 2.1 billion, an EBITDA of “around EUR 600 million” is now expected. According to Wacker Chemie, analysts’ expectations were EUR 498 million in advance. In addition, the company announced that it intends to revise its earnings forecast for the full year 2022 by reporting for the second quarter on July 28.
Hornbach’s Earnings Warning
Hardware store chain Hornbach (DE0006083405) had to accept the forecast of the result after the stock market was closed. The Management Board has already announced a “slight” decline in operating profit before interest and taxes (EBIT) for the current financial year. Due to soaring prices and continued delays in supply chains, this forecast had to be cut down to a “double-digit” EBIT decline for the full year. In the first fiscal year, Hornbach recorded an EBIT of EUR 148 million, which corresponds to a decline of -12% year-on-year. The company left its sales forecast for the financial year unchanged.
The day starts with new data on German inflation. At 08:00 the German Wholesale Price Index for May is published. Estimates are not available. In April, the wholesale price index increased by 23.8% y / y. Additionally, we also get the final inflation rate for May, which, according to German calculations, was 7.9%. According to the harmonized EU calculations, it was 8.7%.
6/14/2022 – Mikey Fritz
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