Oracle CEO Safra Catz is giving a keynote address at Oracle OpenWorld 2019 on September 17, 2019, in San Francisco, California. Oracle CEO Safra Catz started the second day of Oracle OpenWorld 2019 with a main address. The annual convention runs until September 19.
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Oracle shares fell 3% lower in extended trading on Wednesday after the enterprise software maker reported third-quarter tax gains that exceeded analysts’ estimates and increased its quarterly dividends to 32 cents a share. at 24 cents per share.
Here’s how the company did it:
- Earnings: $ 1.16 per share, adjusted, compared to $ 1.11 per share, as expected by analysts, according to Refinitiv.
- Income: $ 10.09 billion, compared to $ 10.07 billion, as expected by analysts, according to Refinitiv.
Oracle’s revenue rose 3% year-over-year in the quarter ended Feb. 28, according to a statement. Revenues increased by almost 2% in the previous quarter.
Oracle’s first business segment, cloud services and licensing support, generated revenue of $ 7.25 billion, up 5% year-on-year in the quarter and slightly lower than the FactSet consensus estimate of $ 7.28 billion.
Revenues from the Oracle cloud license and local licenses totaled $ 1.28 billion, up 4% and above the $ 1.21 billion FactSet consensus. The company reported hardware revenue of $ 820 million, down 4% and even under the FactSet consensus of $ 843 million.
In the following quarter, Oracle introduced a robust portable server for running workloads in the cloud and announced the availability of version 21c of its database software as a cloud service.
Last week, Barclays analysts, led by Raimo Lenschow, raised their rating of Oracle shares to the equivalent of a buyout equivalent, citing the belief that cloud revenue growth will accelerate. “We expect stocks to be revalued, especially as investors’ appetite for stock names and cash flow growth stories continues to improve in a higher-yielding environment emerging from the pandemic,” they wrote.
In terms of guidance, analysts surveyed by Refinitiv expected $ 1.28 in adjusted earnings per share for the fourth fiscal quarter and $ 10.84 billion in revenue, which would mean an increase of about 4%.
Excluding the after-hours move, Oracle shares have risen about 12% since early 2021, while the S&P 500 has risen 4% over the same period. The action ran out in February, as some investors considered the growth potential of cloud services. In the third fiscal quarter, Oracle’s capital expenditures amounted to $ 1.42 billion, up 25%, while one of Oracle’s cloud competitors, Microsoft, had capital expenditures in the fourth quarter with $ 5.4 billion, up 20 percent.
Oracle last increased its dividend in 2019, when it increased by 26%, compared to the 33% increase announced on Wednesday.
The directors will discuss the results with analysts and issue guidance on a conference call starting at 5:00 p.m., Eastern Time.
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