Oracle topped analysts’ fiscal fourth quarter expectations on earnings and revenue, sending its shares soaring to almost +7% during after-hours trading Wednesday.
The software and cloud technology company raked in adjusted earnings of $1.16 per share during the quarter, exceeding analysts’ estimate of $1.07 per share (based on Refinitiv poll of analysts).
The company’s revenue of $11.14 billion also came in higher than the $10.93 billion expected by analysts (based on Refinitiv poll). Oracle’s largest business segment, Cloud Services and License Support, generated $6.80 billion in revenue, beating consensus estimate of $6.76 billion (based on analysts’ poll by FactSet).
Looking ahead, Oracle expects earnings in the range of 80 cents to 82 cents per share, excluding certain items, and revenue growth of flat to 2 percent for the first quarter of the 2020 fiscal year. Analysts polled by Refinitiv had predicted 80 cents per share for the quarter on 1.7% revenue growth.
For the full fiscal year 2020, the company projects that earnings per share would experience double-digit growth, and that revenue would grow faster compare to last year in constant currency. Analysts polled by Refinitiv had expected full-year guidance of $3.79 in earnings per share, excluding certain items, (i.e. growth of 9.9%), on $40.17 billion – implying a revenue growth of 2.2%, which is higher than the almost flat revenue in the prior year.
Recently, Oracle Corp. joined hands with Microsoft Corp. on a cloud interoperability partnership, that would enable customers to migrate and run mission-critical enterprise workloads across Microsoft Azure and Oracle Cloud, as announced by Oracle.