Oracle reported quarterly earnings on Monday that exceeded Wall Street’s expectations. The shares rose 13% in extended trading.
Here’s how the company did:
- Earnings: $1.41 per share, adjusted, versus $1.38 expected, according to LSEG, formerly Refinitiv
- Revenue: $13.28 billion, versus $13.3 billion expected, according to LSEG
For the current quarter, Oracle said it expects earnings of $1.62 to $1.66 per share. Analysts were expecting $1.64 in adjusted earnings per share, according to LSEG. Revenue growth will be between 4% and 6% over sales of $13.8 billion a year ago. The midpoint of that range would equal revenue of about $14.5 billion, while analysts were expecting a little over $14.7 billion.
Revenue rose 7% in the quarter from $12.4 billion a year earlier. Net income climbed 27% to $2.4 billion, or 85 cents per share, from $1.9 billion, or 68 cents per share, a year ago.
Oracle’s cloud services and license support segment, its largest business, saw sales rise 12% to $9.96 billion, slightly beating StreetAccount consensus expectations of $9.94 billion. The company attributed the rise to strong demand for its artificial intelligence servers.
Oracle CEO Safra Catz said the company added several “large new cloud infrastructure” contracts during the quarter. The company’s cloud revenue, which is reported as part of the cloud services unit, rose 25% year-over-year to $5.1 billion, Oracle said.
“We signed several large deals this quarter and we have many more in the pipeline,” Catz told investors on the earnings call.
The company’s other units didn’t fare as well.
Cloud license and on-premise sales declined 3% to $1.26 billion, slightly beating StreetAccount’s forecast. Hardware revenue fell 7% to $754 million, while sales in the company’s services division slid 5% to $1.31 billion, both falling short of StreetAccount expectations.
Prior to Monday’s report, Oracle shares were up 8.7% for the year, slightly outperforming the S&P 500.
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