Oracle Earnings: Here’s Why Shares are Up Now

Oracle Corp. (NASDAQ:ORCL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.83%.

Oracle Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 11.32% to $0.59 in the quarter versus EPS of $0.53 in the year-earlier quarter.

Revenue: Rose 2.44% to $8.38 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Oracle Corp. reported adjusted EPS income of $0.59 per share. By that measure, the company beat the mean analyst estimate of $0.56. It missed the average revenue estimate of $8.48 billion.

Quoting Management: “Next week at Oracle OpenWorld, we will announce the In-Memory Option for the Oracle database,” said Oracle CEO, Larry Ellison. “Virtually every existing application that runs on top of the Oracle database will run dramatically faster by simply turning on the new In-Memory feature. Our customers don’t have to make any changes to their applications whatsoever; they simply flip on the in-memory switch, and the Oracle database immediately starts scanning data at a rate of billions or tens of billions of rows per second.”

Key Stats (on next page)…

Revenue decreased 23.44% from $10.95 billion in the previous quarter. EPS decreased 32.18% from $0.87 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.69 and has not changed. For the current year, the average estimate has moved down from a profit of $2.92 to a profit of $2.89 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)