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Oracle Q3 Profit Tops Street View

Business software giant Oracle Corp. (ORCL), Thursday reported a third-quarter profit that beat Wall Street estimates by a penny, while revenues also trumped expectations.

Redwood Shores, California-based Oracle reported third-quarter profit of $2.57 billion or $0.79 per share, down from last year's profit of $2.75 billion or $0.76 per share.

Adjusted earnings for the quarter increased to $0.97 per share from $0.87 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.96 per share.

Revenues for the quarter grew 2 percent to $9.80 billion compared to last year's $9.61 billion. Analysts had a consensus revenue estimate of $9.75 billion.

Oracle's cloud services and license support revenues rose 4% to $6.93 billion, while cloud license and On-Premise license revenues dropped 2 percent to $1.23 billion. Hardware revenues declined 6 percent to $857 million, while Services revenues slipped 1 percent to $778 million.

"We had an extremely strong quarter with Total Revenues growing 3% in constant currency," said Oracle CEO, Safra Catz. "Subscription revenues, made up of Cloud Services and License Support revenues, grew 5% in constant currency. These consistently growing and recurring subscription revenues now account for 71% of total company revenues, thus enabling a sequential increase in our operating margin, and double-digit non-GAAP Earnings Per Share growth in Q3."

ORCL closed Thursday's trading at $39.80, down $4.92 or 11.00%, on the Nasdaq. The stock, however, gained $1.31 or 3.29% in the after-hours trading.

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