Shares of Oracle Corp fell in the extended session on Monday after the database software company’s earnings exceeded Wall Street estimates, but its earnings did not.
Oracle ORCL,
shares fell 2.5% after hours, after a 0.9% drop in the regular session to close at $ 88.89.
For the first fiscal quarter, Oracle reported a net profit of $ 2.462 billion, or 86 cents a share, compared to $ 2.252 billion, or 72 cents a share, in the previous year.
Adjusted earnings, which exclude stock-based compensation items and other items, were $ 1.03 per share, compared to 93 cents per share in the prior year period.
Revenue rose to $ 9.73 billion from $ 9.37 billion in the previous quarter.
Analysts polled by FactSet had estimated that revenue of 97 cents from revenue was $ 9.76 billion.
“Oracle’s two new cloud businesses, IaaS and SaaS, are now more than 25% of our total revenue with an annual execution rate of $ 10 billion,” Safra Catz, chief executive, said in a statement . “Together, IaaS and SaaS are the new Oracle companies with the most growth and highest margin. As these two cloud businesses continue to grow, they will help broaden our overall profit margins and increase earnings per share. ”