Oracle's Earnings Surprise, Samsung Electronics and SK Hynix Earnings Estimates Need Upward Revision
Oracle's fiscal 2027 first-quarter revenue came in at about $19.3 billion, exceeding the consensus estimate of $19.1 billion and up 30% year-on-year. Adjusted earnings per share of $1.92 also beat estimates and rose 30% year-on-year. Remaining performance obligations, which will be recognized as future revenue, reached $664 billion, up more than $200 billion year-on-year, confirming the expansion of AI cloud contracts. Cloud segment revenue rose 62% year-on-year to $11.6 billion, and the company issued annual revenue guidance of at least $90 billion, above expectations. On this news, the stock jumped more than 6% at one point after hours and rose more than 4% in early regular trading.
Citing the surge in semiconductor exports in early September, Lee Kwangsoo noted that the third-quarter operating profit consensus for Samsung Electronics and SK Hynix remains too low. Current market estimates stand at about 113 trillion won for Samsung Electronics and about 78.3 trillion won for SK Hynix, but he calculated that reflecting the recent sharp rise in DRAM and HBM prices, Samsung Electronics' quarterly operating profit could rise to more than 140 trillion won. He projected that if this trend continues, annual operating profit could reach the 600 trillion won range, and assuming about half of operating cash flow is allocated to dividends, next year's total dividend payout could exceed 200 trillion won, pushing the dividend yield based on the current share price above 10%.
For SK Hynix ADRs, JPMorgan was reported to have initiated coverage with a target price of $245. It assigned a 20% premium over the domestic shares, a figure said to reference the gap between TSMC's home-market shares and its ADRs. JPMorgan projected earnings-per-share compound annual growth of 34% over the next two years and said this upcycle could last more than five years, adding that stock momentum could strengthen if additional long-term supply contracts and updated shareholder return policies are disclosed at the third-quarter earnings announcement.
Lee Kwangsoo assessed that the recent decline was not driven by deteriorating earnings or industry fundamentals but by valuation pressure stemming from Treasury yields, and that a recovery is therefore likely.