Oracle Earnings Cheat Sheet: Here’s What You Need to Know

S&P 500 (NYSE:SPY) component Oracle Corporation (NASDAQ:ORCL) reported net income above Wall Street’s expectations for the fourth 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 $3.5 billion (69 cents per share) vs. $3.21 billion (63 cents per share) in the same quarter a year earlier. This marks a rise of 8% from the year-earlier quarter.

Revenue: Rose 1.2% to $10.9 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Oracle Corporation reported adjusted net income of 82 cents per share. By that measure, the company beat the mean estimate of 76 cents per share. Analysts were expecting revenue of $10.89 billion.

Quoting Management: “Our record-breaking fourth quarter featured several all-time highs for Oracle: new software license sales of $4 billion, total software revenue of $8 billion, total revenue of $11 billion, and EPS of 82 cents,” said Oracle President and CFO, Safra Catz. “For the fiscal year, we also set all-time highs for operating margins of 46%, and operating cash flow of $13.7 billion.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 18.1% and in the second quarter, the figure rose 17.2%.

Revenue has increased for four consecutive quarters. Revenue increased 3.1% to $9.04 billion in the third quarter. The figure rose 2.4% in the second quarter from the year earlier and climbed 11.6% in the first quarter from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with net income of 58 cents versus a mean estimate of net income of 54 cents per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 50 cents a share to 52 cents over the last ninety days. The average estimate for the fiscal year is $2.33 per share, a rise from $2.25 ninety days ago.

Competitors to Watch: Intl. Business Machines Corp., Hewlett-Packard Company, Microsoft Corporation, SAP AG, Intel Corporation, Apple Inc., Red Hat, Inc., EMC Corporation, CA, Inc., and Adobe Systems Incorporated.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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