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Software giant Oracle report fiscal second quarter earnings after the close Monday. $ORCL faces competition on two main fronts, $AMZN for Cloud infrastructure and $CRM platform database revenue. 

Oracle Cloud

Oracle Corporation NYSE: ORCL Reported Earnings After Close Monday

 $0.80 Beat $0.78 EPS Forecast And $9.6B Beat $9.52 billion forecast in revenue. 

Earnings 

Oracle (ORCL) reported fiscal second quarter 2019 earnings of $0.80 per share on revenues of $9.6 billion beating consensus forecast Oracle to post earnings of $0.78 per share on revenue of $9.52 billion.

For the previous year's quarter, $ORCL posted a profit of $0.70 per share on revenue of $9.63 billion. Investors remain concerned about the lack of clarity of the revenue outlook for each segment since the adoption of new accounting standard last year and merging its SaaS, PaaS and IaaS cloud services with the software license division. 

Last quarter Oracle reported revenue of $9.19 billion, missing analyst consensus of $9.28 billion amd has now missed revenue estimates in seven of the past 13 quarters. The company reported adjusted earnings of 71 cents per share ahead of expectations of 69 EPS. It's the fifth quarter in a row that Oracle stock has fallen since reporting quarterly results.

Analysts will look for comments on the recently filed lawsuit by Oracle in federal court alleging that the Pentagon’s planned $10 billion JEDI contract with its single-vendor award is unfair and illegal. The single-award approach is contrary to well-established procurement requirements and is out of sync with the industry’s multi-cloud strategy.

Oracle Corporation NYSE: ORCL

Market Reaction After hours$ 48.18 +2.45 (+5.36%) 

Highlights

  • Cloud Services and License Support segment revenue grew 3%
  • Cloud License and On-premise License, Hardware and Services revenue fell 9%, 5%, and 5% respectively.

“In addition to our strong EPS growth, free cash flow grew 10% to $13.8 billion over the previous twelve months. I am confident that we will continue to record strong EPS and free cash flow growth during the second half of this fiscal year,” said CEO Safra Catz.

ORCL Q2 2018 earnings

With nearly 6,000 Fusion ERP customers and over 16,000 NetSuite ERP customers, Oracle believes that customers will migrate from their traditional on-premise ERP to the Oracle Fusion ERP Cloud.

Oracle declared a quarterly cash dividend of $0.19 per share, which will be paid to stockholders of record as of January 16, 2019, with a payment date of January 30, 2019.

Oracle Sept Q Earnings Recap

 $0.71 Beat $0.69 EPS BUT $9.19 billion Missed $9.28 billion forecast in revenue. 

Earnings 

Oracle reported revenue of $9.19 billion, missing analyst consensus of $9.28 billion, for its fiscal first quarter. Oracle has now missed revenue estimates in seven of the past 13 quarters. The company reported adjusted earnings of 71 cents per share ahead of expectations of 69 EPS. It's the fifth quarter in a row that Oracle stock has fallen since reporting quarterly results.

Oracle Corporation NYSE: ORCL

Market Reaction After hours 47.17 −2.01 (-4.09%)

“We are off to an excellent start with Q1 non-GAAP earnings per share growing 19% in constant currency. That strong earnings per share growth rate increases my confidence that we will deliver on another fiscal year of double-digit non-GAAP earnings per share growth,” said CEO Safra Catz.

Highlights

Cloud Segment

  • Oracle cloud services and license support revenue was $6.6 billion, up 3% from the year-ago period BUT missing analysts surveyed by FactSet estimating total cloud services and license support revenue of $6.68 billion.
  • Analysts were calling for Software-as-a-Service revenue of $1.31 billion,
  • This segment accounts for 72% of total revenue.
  • Total cloud services and license support, plus cloud license and on-premise license revenue were up 2% to $7.5 billion

ORCL Earnings Q1 18

Oracle rolled out its new products at it's annual OpenWorld User Conference, which runs from Oct. 22 to Oct. 25, in San Francisco.

Source: Oracle, Alpha Street

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