Oracle (ORCL.US) stock trades 9% higher on Tuesday after the computer technology company recorded upbeat quarterly results due to its robust cloud business as more firms moved towards a hybrid workplace.
- Oracle earned $1.54 per share in Q4, which easily topped analysts’ expectations of $1.38 per share. Figures beat the company’s guidance by $0.20 per share;
- Revenue rose 5.0% YoY to $11.8 billion and beat Wall Street estimates of $11.65 billion;
- Oracle CEO Safra Catz said, “We believe that this revenue growth spike indicates that our infrastructure business has now entered a hyper-growth phase. Couple a high growth rate in our cloud infrastructure business with the newly acquired Cerner applications business—and Oracle finds itself in position to deliver stellar revenue growth over the next several quarters.”
- Oracle said that unit sales increased by 36%, lifting total cloud revenue by 19% to $2.9 billion, while Cloud License and on-premise license revenues increased 18% to $2.5 billion.
- Company expects that strong US dollar may continue to put pressure on results also in the current quarter;
- Adjusted operating margin fell to 47%, compared with 49% in the prior-year quarter.
- For the current fiscal year, Oracle expects adjusted earnings of $4.90 per share, which represent 5% increase year-over-year and revenue of $42.4 billion.
- Company expects revenues to grow by even 18%, partially thanks to acquisition of Cerner for $28.3 billion, the second-largest designer of software used by doctors and hospitals to manage and store medical records;
- Company will pay quarterly cash dividend of $0.32 per share on July 26, 2022;
After publication of recent quarterly results, JMP Securities analyst Patrick Walravens maintained a Hold rating. Other analysts are also quite optimistic towards the company, with a Moderate Buy consensus rating based on four Buys and eight Holds. Price target oscillates around $90.30. Source: tipranks.com
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Oracle (ORCL.US) stock fell more than 21.00% over the past year. Downward move was halted around major support at $65.20 which is marked with 61.8% Fibonacci retracement of the upward wave launched in March 2020. Stock launched today's session with a bullish price gap, however buyers struggle to break above downward trendline. Source: xStation5
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