S&P 500 (NYSE:SPY) component Oracle Corporation (NASDAQ:ORCL) reported net income above Wall Street’s expectations for the second quarter. Oracle develops, manufactures, markets, distributes, and services software designed to help its customers manage and grow their businesses.
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Oracle Corporation Earnings Cheat Sheet
Results: Net income for Oracle Corporation rose to $2.58 billion (53 cents per share) vs. $2.19 billion (43 cents per share) in the same quarter a year earlier. This marks a rise of 17.7% from the year-earlier quarter.
Revenue: Rose 3.4% to $9.09 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Oracle Corporation reported adjusted net income of 64 cents per share. By that measure, the company beat the mean estimate of 58 cents per share. It beat the average revenue estimate of $8.45 billion.
Quoting Management: “Q2 performance was strong and broad based as all geographies reported double-digit revenue growth in new software license and cloud subscriptions,” said Oracle President, Mark Hurd. “Applications, middleware and database all had double-digit growth in new software license and cloud subscriptions, with applications leading the pack with growth of over 30%. Our cloud offering of HCM, CRM and ERP applications plus the Oracle database and Java platform services is the strongest and most complete in the industry. Already approaching a one billion dollar run rate, our Cloud business will become much bigger over time.”
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 10.5% and in the fourth quarter of the last fiscal year, the figure rose 7.6%.
The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 49 cents versus a mean estimate of net income of 51 cents per share.
After dropping in the quarter before, revenue increased last quarter. Revenue fell 2.3% to $8.18 billion in the first quarter from the year earlier.
Looking Forward: The average estimate for the third quarter remains unchanged at 63 cents a share. For the fiscal year, the average estimate has moved down from $2.55 a share to $2.53 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)