Oracle Shares Rally After Q2 Profit and Revenue Beat


Oracle Corp (NYSE: ORCL)

Oracle Corp. reported fiscal second-quarter financial results after markets closed on Monday.

Analysts were looking for signs of whether the software giant could ramp up its cloud-computing segment after revenue slumped in the first quarter.

Shares of the Redwood City-based company gained 4.96% to $48.00 in post-market trading following the impressive performance. ORCL has lost 2% since the beginning of the year through Monday, while rivals such as Inc. and Microsoft Corp. are up more than 31% and 23%.

ORCL Earnings & Outlook

Oracle posted fiscal second-quarter earnings of $2.33 billion, or $0.61 per share, up 5% from 2.21 billion, or $0.52 per share, in the same period last year. Excluding one-time gains and costs, earnings for the quarter came to $0.80 per share. Analysts were expecting adjusted earnings of $0.78 per share, according to figures compiled by FactSet.

Total revenues dropped slightly to $9.56 billion from $9.59 billion in the comparable period a year ago, but ahead Wall Street expectations of $9.52 billion. Cloud services and license support revenues totaled to $6.6 billion from $6.4 billion, while cloud license and on-premise license revenues came to $1.2 billion.

Oracle CEOs Comments

“In Q2, non-GAAP earnings per share grew 19% in constant currency,” said Oracle CEO, Safra Catz.  “In addition to our strong EPS growth, free cash flow grew 10% to $13.8 billion over the previous twelve months. I am confident that we will continue to record strong EPS and free cash flow growth during the second half of this fiscal year.”

“Oracle’s two cloud ERP businesses, Fusion ERP and NetSuite ERP, delivered a combined revenue growth rate of 32% in Q2,” said Oracle CEO, Mark Hurd. “With nearly 6,000 Fusion ERP customers and over 16,000 NetSuite ERP customers, Oracle is the clear leader in cloud ERP.  ERP has always been the largest segment of the enterprise applications business, so we have lots of room to grow as customers migrate from their traditional on-premise ERP to the Oracle Fusion ERP Cloud.”

Oracle Corp. Profile

Oracle Corp. engages in the provision of products and services that address all aspects of corporate information technology environments. It operates through the following segments: Cloud and License, Hardware, and Services.

The Cloud and License segment markets, sells, and delivers applications, platform, and infrastructure technologies. The Hardware segment provides hardware products and hardware-related software products including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware related software, and related hardware support.

The Services segment offers consulting, advanced support, and education services. The company was founded by Lawrence Joseph Ellison, Robert Nimrod Miner, and Edward A. Oates on June 16, 1977 and is headquartered in Redwood City, CA. – CNN Money