Oracle posted fiscal third-quarter adjusted earnings that surpassed analysts’ expectations.
The cloud technology behemoth’s adjusted earnings came in at $1.16, above the $1.11 per share expected by analysts (according to Refinitiv). Adjusted earnings surged +20% from the year-ago quarter.
Revenue for the quarter rose +3% on an annualized basis to $10.09 billion, vs. $10.07 billion expected by analysts, according to Refinitiv.
The cloud services and license support (72% of the company’s revenues) generated $7.25 billion in revenue, growing +5% year-over-year in the quarter. It was slightly lower than the FactSet consensus estimate of $7.28 billion.
Oracle’s cloud license and on-premises license revenue was up +4% to $1.28 billion, above the $1.21 billion FactSet consensus.
The company reported over +100% growth in its Gen2 Cloud Infrastructure revenue. Fusion Cloud ERP revenue grew +30% and its NetSuite Cloud ERP sales were up +24%.
The company’s hardware revenue fell -4% to $820 million, just under the $843 million FactSet consensus.
Safra Catz, Oracle’s CEO, expects $1.20 to $1.24 in adjusted earnings per share and 5% to 7% revenue growth in the fiscal fourth quarter. Analysts polled by Refinitiv had predicted $1.28 in adjusted earnings per share and the equivalent of 4% revenue growth.
ORCL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 36 cases where ORCL's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
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