Lehman Brothers reiterates buy on Oracle (ORCL).
Analyst Neil Herman says fourth quarter earnings per share exceeded estimates. However, he notes the company effectively cut the first quarter guidance to $0.06-$0.07 earnings per share from the $0.09 consensus estimate. He commends the company for a tremendous job done on its expense line, especially bringing down expenses per employee by almost 20%. He also sees focus remaining on expenses going forward. Given the continued tough environment, and cautious outlook, Herman cut the $0.41 fiscal 2003 (May) EPS estimate to $0.37, and set $0.41 fiscal 2004 estimate. He also cut the $25 target to $12. Herman thinks the stock is attractive on a price-earnings multiple basis, and is out of the danger zone for the next three months.