Oracle, Hewlett-Packard, SAP, First Horizon National and Moodya?s Corp

CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Oracle Corp.(Nasdaq: [ ORCL ]), Hewlett-Packard(NYSE: [ HPQ ]), SAP(NYSE: [ SAP ]), First Horizon National Corp.(NYSE: [ FHN ]) and Moodya�s Corp.(NYSE: [ MCO ]).

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Here are highlights from Thursdaya�s Analyst Blog:

Oracle Impresses in Fiscal Q2

Software giantOracle Corp.(Nasdaq: [ ORCL ]) has solidly outperformed estimates for the 2nd time in as many quarters in fiscal 2011. Oracle posted non-GAAP EPS of 51 cents a share, easily beating the Zacks Consensus Estimate of 44 cents. Oracle's revenue jumped 47% year over year to $8.6 billion in the quarter (both GAAP and non-GAAP). The Zacks Consensus Estimate for revenue was $8.3 billion.

Oracle had forecast healthy growth in new software license sales, but the 21% gain outperformed the company guidance of 6-16%. New software license sales and product support brought in $3.7 billion in the quarter, up from $3.45 billion in the 1st quarter of fiscal 2011.

It has been nearly a year since Oracle purchased Sun Microsystems for $7.3 billion, and Q2 marks the 2nd operating with co-president Mark Hurd, formerlyHewlett-Packard's(NYSE: [ HPQ ]) CEO. Last month, Oracle won $1.3 billion at trial from German competitorSAP(NYSE: [ SAP ]) when it was decided that SAP had illegally downloaded millions of password-protected Oracle files.

So it had been an eventful quarter for Oracle, yet analysts remained reluctant to either upgrade or downgrade earnings estimates. The 44 cents per share expected was a penny higher than it was 90 days ago, even though one out of the 18 analysts covering Oracle had upwardly revised in the past week. Thinking back to Q1, the very same thing had happened -- analysts had stayed pat on earnings estimates for the most part, allowing the company to far exceed expectations.

Shares of Oracle had pulled back before the closing bell on Thursday by 22 cents per share, or 0.72%, but they immediately jumped 4% on the earnings news in the after-market. This again is a carbon-copy of what happened a quarter ago.

Oracle's impressive numbers for the quarter would indicate that the worry about IT suffering tougher times in the quarters ahead is somewhat unfounded, or at least not widespread enough to include the diversified tech giant.

First Horizon a" TARP Update

Memphis-basedFirst Horizon National Corp.(NYSE: [ FHN ]) is progressing well with its capital raise initiatives to repay the bailout money it received under the U.S. Governmenta�s Troubled Asset Relief Program (TARP).

On Wednesday, First Horizon sold $500 million in senior holding company notes, according to IFR, a Thomson Reuters service. The deal size exceeded the originally planned $400 million. The notes carry a rating of aBaa1a from Moodya�s Investor Service, a unit ofMoodya�s Corp.(NYSE: [ MCO ]), with the maturity date being December 15, 2015.

On Tuesday, First Horizon also priced a common stock offering of around 23.8 million shares at $10.50 per share, the gross proceeds coming in at $250 million. The company also granted the underwriters a 30-day option to purchase up to an additional 3,571,428 shares of common stock at the offering price.

First Horizon would use the net proceeds from the notes sale and the equity offering to repurchase 866,540 preferred shares issued to the Treasury under TARP and redeem $103 million of other debt. The TARP repayment is, however, subject to consultation with its banking regulators and the approval of the U.S. Treasury.

Our Take

Following the TARP loan repayment, the company would be free of significant government interventions. The company would enjoy flexibility in dividend payments, executivesa� pay packages and capital management. But the capital raise through common stock offering would result in future earnings dilution.

First Horizon currently retains its Zacks #3 Rank, which translates to a short-term Hold rating. Considering the companya�s fundamentals, we also have a Neutral recommendation on the stock.

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Oracle, Hewlett-Packard, SAP, First Horizon National and Moodya?s Corp