Oracle Cloud Earnings Dissapoint Sending $ORCL Lower

Software giant Oracle reported better than expected second quarter earnings but misses on Cloud infrastructure and platform revenue has seen the stock $ORCL fall 4.5% on Friday. $ORCL also lower it’s outlook, this followed lowered guidance in Q1.

Software giant Oracle reported better than expected second quarter earnings but misses on Cloud infrastructure and platform revenue and lowered guidance has seen the stock $ORCL fall 4.5% on Friday. This followed lowered guidance in Q1. $ORCL is in a battle with $AMZN, $MSFT and $GOOGL for the Cloud segment.

Oracle Cloud

Earnings

  • Excluding certain items, 70 cents in earnings per share vs. 68 cents expected according to Thomson Reuters.
  • Revenue was $9.62 billion vs. $9.57 billion expected according to Thomson Reuters.

Reaction

Oracle Corporation NYSE: $ORCL Pre-market 47.97 -2.22 (-4.42%)

Cloud Segment

Oracle’s Cloud revenue makes up 16% of the company’s overall revenue at $1.5Bil, up 44% YoY. Of that sum, $1.1Bil was attributed to Software as a Service and $396MM to Platform- and Infrastructure-as-a-Service, up 55% and 21%, respectively.

Preview of Bite Image

Guidance

  • Oracle is expecting 68-70 cents in earnings per share, excluding certain items.
  • $ORCL see 2-4 percent revenue growth in constant currency .

Analysts had projected 72 cents in earnings per share, excluding certain items, on $9.68 billion in revenue, according to Thomson Reuters.

Source: Oracle, Alpha Street

Live From The Pit

Leave a Reply

Your email address will not be published. Required fields are marked *