logo
  

Oracle Q3 Profit Misses Street View; Stock Down 5%

Shares of Oracle Corp. (ORCL) slipped over 5% in extended hours on Thursday after the business software giant reported a third-quarter profit that missed Wall Street estimates. However, revenues for the quarter were in line with analysts expectations.

Redwood Shores, California-based Oracle reported third-quarter profit of $2.32 billion or $0.84 per share, down from $5.02 billion or $1.68 per share last year.

On an adjusted basis, earnings for the quarter were $3.10 billion or $1.13 per share for the period, down from $3.49 billion or $1.16 per share last year. Analysts polled by Thomson Reuters expected earnings of $1.18 per share. Analysts' estimates typically exclude special items.

Revenues for the quarter rose 4% to $10.51 billion from $10.09 billion last year. Analysts had a consensus revenue estimate of $10.51 billion.

Cloud services and license support revenues rose to $7.64 billion from $7.25 billion, while Cloud license and on-premise license revenues rose to $1.29 billion from $1.28. Hardware revenues dropped to $798 million from $820 million last year, while services rose to $789 million from $737 million.

"In Q3, Oracle delivered over 7% constant currency revenue growth—our highest quarterly organic revenue growth rate since we began our transition to the cloud," said Oracle CEO, Safra Catz. "This strong top line growth was coupled with a solid non-GAAP constant currency operating profit growth of 4%, but the big story is that our overall revenue growth is being driven by both our rapidly growing Cloud Infrastructure and Cloud Applications businesses.

ORCL closed Thursday's trading at $76.65, up $0.55 or 0.72%, on the Nasdaq. The stock, however, slipped $4.38 or 5.71%, in the after-hours trading.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The US Centers for Disease Control and Prevention or CDC has ended recommendations for social distancing and quarantine with a view to minimize covid-19's impact on persons, communities, and health care systems. The agency also ended recommendation for test-to-stay in schools, CNN noted. Healthcare major Johnson & Johnson, which is in the middle of a talcum powder fiasco, said it is discontinuing talc-based JOHNSON'S Baby Powder globally in 2023. The company plans to transition to an all cornstarch-based baby powder portfolio. According to the company, the commercial decision to use cornstarch in all its baby powder products was made after conducting an assessment of its portfolio Walt Disney's streaming service Disney+ is rolling out its much-anticipated new ad-supported subscription plan for Disney+ in the U.S. as part of its bid to stem the loss and make its streaming business profitable after the services posted a hefty operating loss of more than $1 billion in the third quarter. It is also raising pricing for its bundled subscription plans with Hulu, ESPN+ and live TV.
Follow RTT