Oracle CEO Safra Catz delivers a keynote address at the 2019 Oracle OpenWorld on September 17, 2019 in San Francisco, California. Oracle CEO Safra Catz begins day two of the 2019 Oracle OpenWorld with a speech. The annual meeting lasts until September 19th.
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Oracle shares rose 3% lower in extended trading on Wednesday after the enterprise software maker reported third-quarter fiscal earnings that exceeded analysts’ estimates and raised its quarterly dividend to 32 cents a share from 24 cents a share.
Here’s how the company fared:
- Earnings: $ 1.16 per share, adjusted to $ 1.11 per share as expected by analysts, according to Refinitiv.
- Income: According to Refinitiv $ 10.09 billion, compared to $ 10.07 billion, as expected by analysts.
According to a statement, Oracle’s revenue rose 3% year-on-year, ending February 28th. Revenue grew by almost 2% in the previous quarter.
Oracle’s top business segment, cloud services and licensing support, generated $ 7.25 billion in revenue, up 5% year-over-year and slightly lower than the $ 7.28 billion FactSet consensus estimate.
Oracle’s cloud licensing and local licensing revenue is $ 1.28 billion, up 4% and above the $ 1.21 billion FactSet consensus. The company reported $ 820 million in hardware revenue, a 4% drop and just under the $ 843 million FactSet consensus.
During the quarter, Oracle introduced a portable, robust server for performing cloud workload and made version 21c of its database software available as a cloud service.
Last week, Barclays analysts led by Raimo Lenschow raised their rating on Oracle shares to the equivalent of buying the equivalent of the property, citing their belief that growth in cloud revenue will accelerate. “We expect equities to re-evaluate, especially as investors’ appetite for valuation and cash flow stories continues to improve in a higher rate of return coming from the pandemic,” they wrote.
In terms of guidance, analysts surveyed by Refinitiv expect $ 1.28 in adjusted earnings per share for the fiscal fourth quarter and $ 10.84 billion in revenue, which would imply about 4%.
Excluding the after-hours move, Oracle shares have risen about 12% since the beginning of 2021, while the S&P 500 index has risen 4% over the same period. The stock rose in February as some investors considered the potential for growth through cloud services. In the fiscal third quarter, Oracle’s capital expenditure was $ 1.42 billion, up 25%, while one of Oracle’s cloud competitors, Microsoft, had $ 5.4 billion in capital expenditure in the fourth quarter, up 20%. .
Oracle last increased its dividend in 2019, when it rose by 26%, compared to the 33% increase announced on Wednesday.
Managers will discuss the results with analysts and provide guidance on a conference starting at 5pm Eastern time.
This is news. Check back for updates.
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