Oracle (ORCL.US) shares are declining over 12% after the company published its quarterly report. The company posted an earning of $1.19 per share, slightly surpassing the analysts' expectation of $1.15 per share. However, the revenue stood at $12.45 billion, slightly below the forecast of $12.47 billion. Oracle's cloud services and license support segment did well, with a revenue increase of 13% YoY, standing at $9.55 billion, higher than the expected $9.44 billion. Despite announcing new database hardware and artificial intelligence features during the quarter, the company experienced a decline in other segments; the cloud license and on-premises license sector saw a 10% decrease in revenue, and hardware revenue fell by 6% YoY.
Sudden decline in share price is mainly caused by the lower guidance and forecasts for this year. Oracle predicts a 5-7% revenue growth for the fiscal second quarter, which is less than the 8% anticipated by analysts.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appIn a detailed breakdown of the company’s performance, Oracle’s CEO Safra Catz highlighted the ongoing “accelerated transition” of Cerner, a recently acquired electronic health record software company, to the cloud — a move causing "near-term headwinds" to its growth rate as customers shift from licensed purchases to cloud subscriptions.
Highlights:
-
Total Revenue: $12.5 billion, up 9% in USD (YoY), and up 8% in constant currency
- Cloud Revenue (IaaS + SaaS): $4.6 billion, up 30% in USD (YoY), and up 29% in constant currency
- Cloud Infrastructure (IaaS) Revenue: $1.5 billion, up 66% in USD (YoY), and up 64% in constant currency
- Cloud Application (SaaS) Revenue: $3.1 billion, up 17% in USD and constant currency (YoY)
- Fusion Cloud ERP (SaaS) Revenue: $0.8 billion, up 21% in USD (YoY), and up 20% in constant currency
- NetSuite Cloud ERP (SaaS) Revenue: $0.7 billion, up 21% in USD and constant currency (YoY)
-
EPS: $1.19, up 16% in USD (YoY)
Source: xStation 5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
