Larry Ellison, co-founder and CEO of Oracle Corp., speaks throughout the Oracle OpenWorld conference in San Francisco on October 22, 2018.
David Paul Morris | Bloomberg | Getty Images
oracle reported Quarterly profit on Monday, which beat Wall Street expectations. Shares rose 13% in prolonged trading.
Here’s how the corporate performed in comparison with estimates from LSEG, formerly often known as Refinitiv, in its fiscal third quarter ended Feb. 29:
- Earnings per share: $1.41 adjusted vs. $1.38 expected
- revenue: $13.28 billion versus expected $13.3 billion
For the fourth fiscal quarter, Oracle expects earnings of $1.62 to $1.66 per share. Analysts expected adjusted earnings per share of $1.64, in response to LSEG. Sales growth might be between 4% and 6% in comparison with sales of $13.8 billion a 12 months ago. The midpoint of this range would correspond to sales of about $14.5 billion, while analysts had expected just over $14.7 billion.
Oracle CEO Safra Catz said the corporate is committed to achieving its previously stated goals of $65 billion in revenue until the 2026 financial 12 months. “Some of these targets may prove too conservative given our dynamics,” Catz said.
Revenue rose 7% within the quarter from $12.4 billion a 12 months earlier. Net income rose 27% to $2.4 billion, or 85 cents per share, compared with $1.9 billion, or 68 cents per share, a 12 months earlier.
Oracle’s cloud services and license support segment, its largest division, posted a 12% increase in revenue to $9.96 billion, easily beating StreetAccount consensus expectations of $9.94 billion. The company attributed the rise to strong demand for its artificial intelligence servers.
Catz said the corporate secured several “large new cloud infrastructure” deals throughout the quarter. The company’s cloud revenue, reported as a part of its cloud services unit, rose 25% 12 months over 12 months to $5.1 billion, Oracle said.
“We signed several large deals this quarter and have many more in the pipeline,” Catz told investors on the earnings call.
Larry Ellison, CEO of Oracle, cited increased business from Microsoft within the earnings release.
“We are building 20 Microsoft and Azure data centers. They just ordered three more data centers this week,” Ellison said.
The company’s other units didn’t fare so well.
Cloud license and on-premise revenue fell 3% to $1.26 billion, barely beating StreetAccount forecast. Hardware revenue fell 7% to $754 million, while revenue at the corporate’s services division fell 5% to $1.31 billion, each of which fell wanting StreetAccount’s expectations.
Before Monday’s report, Oracle shares were up 8.7% for the 12 months, barely outperforming the S&P 500.
