A couple of thoughts from Rob who is right on the money. Aivars Lode
"Why is it the company's fault when analysts fail to forecast correctly? When I was forecasting and got the numbers wrong I took responsibility and tried to improve my models and research. That is why I blew away the earnings accuracy stats the times I tried. Then I learnt to game the system. But it was MY FAULT when my numbers were off. This is the perfect example of no-such-thing as Wall Street "research".
Second, there is still growth (maybe less of it), which means IT spending is still growing. Reporters (and analysts) are mathematically challenged. They say growth when they mean the rate of growth, and as long as they are spending something they are hardly "putting on the brakes".
I LOVE it when analysts cut ratings AFTER a company misses a QUARTER. I got to be a great stock picker by doing the opposite as frequently as possible.
It cracks me up the way the BofA guy talks, learning from Oracle that deals were taking longer to close, if this is indeed the case he would have plenty of data points from CUSTOMER conversations. He would have lowered estimates on the quarter before reporting or called out Catz for not being completely "transparent."
HERE IS THE REAL STORY --
ORACLE MIS-TIMED ITS NEXT MAJOR ACQUISITION.
And there are plenty of deals to do. CERN, OTEX, MDRX, a carve out from HPQ, tons of stuff in PE-land.
Also I would not put it past ORCL to whine on the call about the IT environment knowing it would drive down valuations and present some bargains. Deceptive but not illegal. "
Thanks Rob, the following is the analysts report from Bank of America.
Oracle missing its earnings guidance is like Mariano Rivera blowing a save opportunity, or Bob Dylan putting out a disappointing record. It happens, but not very often. And when it does, the only real question is: Why?