Oracle Earnings: Profit Rises for Third Straight Quarter, but Misses Estimates
Falling revenue did not prevent S&P 500 (NYSE:SPY) component Oracle Corporation (NASDAQ:ORCL) from reporting a profit boost in the first 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 $2.03 billion (41 cents per share) vs. $1.84 billion (36 cents per share) in the same quarter a year earlier. This marks a rise of 10.5% from the year-earlier quarter.
Revenue: Fell 2.3% to $8.18 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Oracle Corporation fell short of the mean analyst estimate of 51 cents per share. It fell short of the average revenue estimate of $8.45 billion.
Quoting Management: “On a non-GAAP basis, new software licenses and cloud software subscriptions sales grew 11% in constant currency and operating margin increased to 44% in Q1,” said Oracle President and CFO, Safra Catz. “Q1 operating cash flow increased to a record high of $5.7 billion. We’re off to a good start in the new year.”
The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 7.6% and in the third quarter of the last fiscal year, the figure rose 18.1%.
A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the first quarter of the last fiscal year, which saw revenue rise 11.6%.
The company fell short of forecasts after beating estimates in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by 3 cents, and in the third quarter of the last fiscal year, it was ahead by 4 cents.
Looking Forward: The average estimate for the second quarter remains unchanged at 59 cents a share. The average estimate for the fiscal year is $2.56 per share, a rise from $2.55 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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