Oracle Cloud Services Earnings Dissappoint

Software giant Oracle reported fiscal first quarter earnings after the close Monday missing on revenue but beat on earnings. $ORCL dissappointed in the face of competition on two main fronts, $AMZN for Cloud infrastructure and $CRM platform database revenue. 

Software giant Oracle reported fiscal first quarter earnings after the close Monday missing on revenue but beat on earnings. $ORCL dissappointed in the face of competition on two main fronts, $AMZN for Cloud infrastructure and $CRM platform database revenue. 

Oracle Cloud

Oracle Corporation NYSE: ORCL Missed Earnings After Close Monday

 $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 will be rolling 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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