Oracle CEO Safra Catz is giving a keynote address during Oracle OpenWorld 2019 on September 17, 2019 in San Francisco, California. Oracle CEO Safra Catz kicked off the second day of Oracle OpenWorld 2019 with a keynote address. The annual convention runs until September 19th.
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Oracle shares fell 3% less in extended trading on Wednesday after the business software maker reported third-quarter tax gains that surpassed analysts’ estimates and raised its quarterly dividend to 32 cents per share of 24 cents per share.
Here’s how the company did it:
- Earnings: $ 1.16 per share, adjusted, versus $ 1.11 per share, as analysts expected, according to Refinitiv.
- Income: $ 10.09 million, up from $ 10.07 million, as analysts expected, according to Refinitiv.
Oracle’s revenue rose 3% on an annualized basis in the quarter, which ended Feb. 28, according to a statement. Revenue grew about 2% in the previous quarter.
Oracle’s largest business segment, cloud services and licensing support, generated revenue of $ 7.25 billion, up 5% year-on-year in the quarter and slightly lower than FactSet’s consensus estimate of $ 7.28 million. dollars.
Oracle’s cloud licensing and local licensing revenues totaled $ 1.288 billion, up 4% from the $ 1.211 billion FactSet consensus. The company reported hardware revenue of $ 820 million, 4% less and below the $ 843 million FactSet consensus.
In the quarter, Oracle introduced a robust portable server to run workloads in the cloud and announced the availability of version 21c of its database software as a cloud service.
Last week, Barclays analysts led by Raimo Lenschow raised their rating on Oracle shares to the buy equivalent of the hold equivalent, citing their belief that revenue growth in the cloud s ‘acceleraria. “We expect stocks to be reclassified, especially as investors’ appetite for securities and cash flow growth stories continue to improve in a higher-yielding environment emerging from the pandemic, ”they wrote.
In terms of guidelines, analysts surveyed by Refinitiv expected $ 1.28 in adjusted earnings per share for the fourth fiscal quarter and $ 10.84 million in revenue, which would imply 4% growth.
Excluding off-hours movement, Oracle shares have risen about 12% since the beginning of 2021, while the S&P 500 index has risen 4% over the same period. Shares had sold out in February as some investors considered the growth potential of cloud services. In the third fiscal quarter, Oracle’s capital expenditures reached $ 1.24 billion, up 25%, while one of Oracle’s cloud competitors, Microsoft, had $ 5.4 billion in capital expenditures for the fourth quarter. quarter, 20% more.
Oracle last increased its dividend in 2019, when it rose 26%, compared to the 33% increase announced Wednesday.
Executives will discuss the results with analysts and issue guidelines on a conference call starting at 5 p.m., Eastern Time.
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