Oracle reported earnings in line with expectations on Monday, but earnings and quarterly guidance fell short of analyst estimates.
Earnings in the quarter were up 18% year over year, driven by the recently acquired software maker Cerner.
Here’s how the company did it:
- Earnings: Analysts had expected $1.07 per share, compared to an adjusted $1.03 per share, according to Refinitiv.
- Earnings: Analysts expected $11.45 billion, according to Refinitiv.
Oracle received a $1.4 billion donation from Cerner following its $28 billion acquisition. closed during the quarter.
Oracle CEO Safra Catz speaks at SelectUSA Investment Summit June 19, 2017 in Oxon Hill, Maryland. Foreign Direct Investment (FDI) into the United States.
Eric Thayer | Bloomberg | Bloomberg | Getty Images
Net income decreased to $1.55 billion from $2.46 billion a year ago. Oracle said that had it not been for the unfavorable foreign exchange rate, he would have increased adjusted earnings per share by 8 cents.
Oracle’s cloud services and license support category posted revenue of $8.42 billion, up 14% and beating the StreetAccount consensus of $8.27 billion.
Oracle’s application and infrastructure cloud business now accounts for more than 30% of total revenue, CEO Safra Catz said in a statement. Quarterly revenue from cloud infrastructure increased 52% to his $900 million.
In terms of guidance, Oracle said it expects second-quarter adjusted earnings per share of $1.16 to $1.20 and revenue growth of 15% to 17%. Analysts surveyed by Refinitiv are calling for $1.27 a share and $12.17 billion in revenue, suggesting nearly 18% growth.
Catz said he expects exchange rates to have a negative 5% to 6% impact on earnings, hurting earnings by up to 7 cents per share this quarter.
Oracle co-founder, chairman and technical lead Larry Ellison boasted that Oracle Cloud Infrastructure (OCI) will bring additional business.
“I’ve spoken to a few people personally. Amazon’s It’s the most well-known brand running on AWS,” he said. You can also save a lot of money by moving to OCI. Also, in the next quarter, he will announce several brands and companies moving from Amazon to OCI. I will stop there. ”
Excluding after-hours activity, Oracle’s stock is down about 12% year-to-date. The S&P 500 is down about 14% year-to-date.