Oracle Corporation (ORCL) - NYSE
  • Wed, Jun. 29, 7:06 PM
    • Oracle (ORCL +3.6%) has priced $14B in investment-grade debt.
    • The sizable offering comes in several tranches: $4.25B in 1.9% notes due 2021, $2.5B of 2.4% notes due 2023, $3B of 2.65% notes due 2026, $1.25B of 3.85% notes due 2036, and $3B in 4% notes due 2046.
    • The company plans to use proceeds for general purposes, which it says could include buybacks, dividends debt repayment and M&A.
    • Total debt at the company at last report was just under $44B, with a debt/equity of 91.77. It's got $20.2B in cash and equivalents.
    • Underwriters are led by Citigroup Global Markets, HSBC Securities, J.P. Morgan Securities, Merrill Lynch, Pierce Fenner & Smith, and Wells Fargo Securities.
    | Wed, Jun. 29, 7:06 PM | 5 Comments
  • Thu, Jun. 16, 4:14 PM
    • Oracle (NYSE:ORCL): FQ4 EPS of $0.81 misses by $0.01.
    • Revenue of $10.6B (-1.0% Y/Y) beats by $130M.
    • Shares +2.6%.
    • Press Release
    | Thu, Jun. 16, 4:14 PM
  • Wed, Jun. 1, 6:39 PM
    • A week after Oracle (NYSE:ORCL) lost its high-profile copyright fight with Google, the company may need long-term parking arrangements at the courthouse as it gets tied up in more cases.
    • The company is named in a $3B suit by the former Hewlett-Packard, which charges Oracle with damaging sales of its personal computers.
    • HP Enterprise (NYSE:HPE) claims Oracle "breached a clear contractual obligation to HP and acted in bad faith, with the intention of driving hardware sales from HP's Itanium to Oracle's Sun servers." For its part, Oracle says HP is seeking "an astonishing damages amount ... because of a press release that told the truth" about the long decline of RISC and the Itanium market.
    • The two used to be business partners but a split deepened when Oracle acquired HP rival Sun Microsystems and later hired HP ex Mark Hurd as co-president.
    • Meanwhile, a former senior finance manager is suing, saying she was terminated in reliation over complaints about accounting practices in its cloud services business. Management pushed Svetlana Blackburn to "fit square data into round holes" to make the business look better, she claims.
    • Oracle shares have fallen 2.6% in after-hours trading.
    | Wed, Jun. 1, 6:39 PM | 8 Comments
  • Mon, May 2, 8:19 AM
    • Opower (NYSE:OPWR) +29.2% premarket after the provider of customer engagement and energy efficiency cloud services to utilities agrees to be acquired by Oracle (NYSE:ORCL) in a deal valued at ~$532M.
    • ORCL will pay $10.30/share in cash, representing a 30% premium to Friday's OPWR closing price.
    • ORCL says the acquisition will make it the largest provider of mission-critical cloud services to utilities.
    • Now read Oracle's right of passage has come
    | Mon, May 2, 8:19 AM
  • Tue, Mar. 15, 5:40 PM
    | Tue, Mar. 15, 5:40 PM | 1 Comment
  • Tue, Mar. 15, 4:26 PM
    • Oracle (NYSE:ORCL) has used its FQ3 report (revenue missed, EPS beat) to announce it's adding $10B to its buyback authorization. The new funds are good for repurchasing 6% of shares at current levels. $8.5B was spent on common stock repurchases over the first 9 months of FY16, with over $2B spent in FQ3 (boosted EPS).
    • The software giant has also declared its regular $0.15/share quarterly dividend (1.5% yield). The next dividend is payable on April 28 to shareholders on record as of April 14.
    • Top-line performance: Op-premise software + cloud revenue fell 1% Y/Y in FQ3, and rose 3% in constant currency (within a 3%-4% guidance range). On-premise software revenue fell 4% to $6.3B, a smaller decline than FQ2's 7%. Cloud revenue rose 40% to $735M, an improvement (thanks to strong prior bookings) from FQ2's 26%. Hardware revenue fell 13% to $1.1B, and other services revenue fell 7% to $793M. Forex had a 400 bps impact on revenue growth (-3% Y/Y vs. +1%)

      Within on-premise, new software license revenue (hurt by cloud adoption) fell a steep 15% Y/Y to $1.7B. Software license update/product support revenue (driven by past license deals) was flat at $4.7B. Within cloud, SaaS/PaaS (cloud apps and app platforms, an Oracle priority) revenue rose 57% to $583M; IaaS (cloud infrastructure, faces tough competition from Amazon and others) revenue fell 2% to $152M. SaaS/PaaS bookings rose 77% Y/Y in constant currency. Mark Hurd and Larry Ellison once more trash-talk Salesforce and Workday.
    • Financials: Lifting EPS: GAAP costs/expenses rose just 1% Y/Y to $6B, thanks partly to a 23% drop in amortization expenses to $408M. Sales/marketing spend rose 3% to $1.9B, R&D 4% to $1.4B, and G&A 15% to $290M. Oracle ended FQ3 with $51B in cash/investments (much of it offshore) and $40B in debt.
    • ORCL +3.9% after hours to $40.23. Conference call at 5PM ET (webcast), guidance should be provided.
    • Oracle's FQ3 results, earnings release
    | Tue, Mar. 15, 4:26 PM | 2 Comments
  • Dec. 17, 2015, 2:11 PM
    • Oracle (ORCL -5.1%) has dropped to within $2 of a 52-week low of $35.14 after issuing somewhat soft FQ3/FQ4 guidance to go with mixed FQ2 results. A handful of firms have cut targets, but no downgrades have arrived.
    • Like other analysts, Wedbush's Steve Koenig (Neutral, $40 target) observes Oracle's FQ2 EPS beat stemmed from a lower-than-expected tax rate of 20.4%. He calls the headline results "fairly solid," but adds net billings fell 8% Y/Y (in spite of SaaS/PaaS strength) and remains worried about the impact of a mix shift towards cloud revenue on margins.
    • Morgan Stanley's Keith Weiss (Equal-Weight, $45 target) is still optimistic Oracle will generate more revenue from cloud software deals - he roughly estimates 70% more over a 10-year span - than on-premise deals, but (echoing past concerns) still has concerns about their bottom-line impact. Weiss also questions the ability of Oracle's IaaS (cloud infrastructure) business to compete with much larger rivals such as Amazon and Microsoft.
    • Credit Suisse's Philip Winslow (Outperform, $50 target) is still a believer. He notes Oracle sees SaaS/PaaS gross margin rising to 60% from FQ2's 43% as more billings convert to revenue, and sees cloud growth, sales productivity improvements, in-memory database adoption, and engineered systems demand acting as potential catalysts.
    • Oracle currently trades for 14x a pre-earnings FY16 (ends May '16) EPS consensus of $2.60.
    • Prior Oracle coverage
    | Dec. 17, 2015, 2:11 PM | 2 Comments
  • Dec. 16, 2015, 4:31 PM
    • Oracle (NYSE:ORCL): FQ2 EPS of $0.63 beats by $0.03.
    • Revenue of $9B (-6.3% Y/Y) misses by $60M.
    • Shares +2.5%.
    | Dec. 16, 2015, 4:31 PM | 1 Comment
  • Oct. 28, 2015, 4:25 PM
    • Equinix (NASDAQ:EQIX) is off 2% in choppy trading after hours in the wake of posting Q3 results where revenues and FFO grew solidly though EPS fell short of consensus.
    • Adjusted FFO was up to $210.4M, but net income came to $0.71/share vs. an expected $1.11. Revenues were up 10.7% Y/Y and up 3% sequentially. Recurring revenues (co-location, interconnection, managed services) were up 10% Y/Y to $646.7M.
    • Gross margins were 53% compared to a year-ago 51%.
    • The company also announced a deal with Oracle (NYSE:ORCL) to bring Oracle's Cloud services to six global markets via the Equinix Cloud Exchange: Amsterdam, Chicago, London, Singapore, Sydney and Washington, D.C. Cloud is the fastest-growing part of Oracle's business, supporting 62M users and 23B transactions a day.
    • Equinix is guiding to Q4 revenues of $701M-$705M vs. consensus of $701M. It expects Q4 EBITDA of $328M-$332M vs. an expected $327M. It sees full-year 2015 revenues of $2.696B-$2.7B, above consensus of $2.693B, and EBITDA of $1.267B-$1.271B, above an expected $1.26B.
    • Conference call to come at 5:30 p.m. ET.
    | Oct. 28, 2015, 4:25 PM
  • Sep. 16, 2015, 5:36 PM
    | Sep. 16, 2015, 5:36 PM
  • Sep. 16, 2015, 5:29 PM
    • On a constant currency basis, Oracle (NYSE:ORCL) expects FQ2 revenue to be down 2% to up 1% Y/Y, and EPS to be in a range of $0.63-$0.66 - forex is expected to have a 6% impact on revenue growth, and a $0.05 impact on EPS. Consensus in actual dollars is for -0.6% revenue growth and EPS of $0.65.
    • Total software and cloud revenue is expected to be flat to up 2% in constant currency. SaaS/Pass revenue is expected to grow 36%-40%, and IaaS revenue 5%-9%.
    • For the whole of FY16 (ends May '16), Oracle expects 3%-4% CC software/cloud revenue growth, 50% SaaS/PaaS growth, and 0%-1% on-premise software (licenses + update/support revenue) growth.
    • Strong bookings are expected to lead SaaS/PaaS revenue growth to accelerate as FY16 progresses - bookings were up 165% in FQ1 in CC, leading dollar-based billings to rise 70% (well above 34% revenue growth).
    • ORCL -2.4% after hours to $37.35.
    • FQ1 results, details
    | Sep. 16, 2015, 5:29 PM | 4 Comments
  • Jun. 18, 2015, 5:33 PM
    • Dave Donatelli, the head of HP's enterprise hardware ops until being reassigned in 2013, has been named Oracle's (NYSE:ORCL) EVP of Converged Infrastructure. That puts him in charge of engineered systems, server, storage/tape, and networking hardware.
    • Oracle's hardware systems revenue fell 4% Y/Y in FQ4 to $1.4B, with a strong dollar and ongoing SPARC server declines offsetting engineered systems growth. Engineered bookings were up double-digits.
    • Meanwhile, the enterprise software giant received a handful of target cuts following its FQ4 miss and soft FQ1 guidance, but no downgrades. Bulls focused on healthy cloud growth, and bears on declining license revenue and the margin pressures caused by the cloud shift. Shares closed down 4.8%.
    • Goldman's Heather Bellini (Buy): “We expect ORCL’s license results to continue to be pressured on a yoy basis,” writes Bellini. “However our field checks also confirm that the company’s competitiveness in the cloud has improved considerably over the last 12-18 months.” Her FY16 (ends May '16) EPS estimates has been cut by $0.24 to $2.66.
    • FBR's Daniel Ives (Outperform): "While management blamed the weakness on currency, it is clear to us that the company continues to struggle with its cloud transition, secular headwinds, and lingering execution issues in the field ...  While it would be easy for us to throw in the white towel ... we see some positive signs of cloud growth and ultimately believe that the 12c [database] product cycle could be a growth catalyst in FY16 as more customers adopt the cloud-centric platform."
    • Citi's Walter Pritchard (Neutral): "[W]e do not have a great framework for cloud transition at Oracle and Q4 results raise concerns about profitability levels in SaaS/PaaS as it substitutes for license ... SaaS / PaaS gross margin deteriorated further and on 28% higher SaaS/PaaS revenue in 4Q15, ORCL gross profit was 14% lower."
    • Prior Oracle coverage
    | Jun. 18, 2015, 5:33 PM
  • Jun. 18, 2015, 9:22 AM
    | Jun. 18, 2015, 9:22 AM | 2 Comments
  • Jun. 17, 2015, 5:41 PM
    • Continuing its recent custom, Oracle (NYSE:ORCL) has provided all of its FQ1 guidance (delivered on the FQ4 call) in constant currency, which backs out the impact of the dollar's rise.
    • On a CC basis, the company forecasts 5%-8% FQ1 revenue growth and EPS of $0.56-$0.59; consensus in actual dollars is for 0.2% revenue growth and EPS of $0.61. Total software/cloud revenue is expected to grow 6%-8% in CC, and SaaS/PaaS revenue 39%-43%. For reference, forex had an 8% impact on FQ4 revenue growth, and a $0.09 impact on EPS.
    • Trying to put a good face on Oracle's FQ4 performance, co-CEO Safra Catz highlighted the company's strong cloud software/services growth, and noted the shift to cloud subscriptions from licenses leads revenue recognition to be pushed out. SaaS/PaaS bookings rose over 200% Y/Y to $426M (said to top an internal target of $300M), and total cloud billings rose 78% to $834M. Traditional app and database license revenue (-17%) was at $3.1B during the quarter.
    • Oracle is at $42.15 AH.
    • FQ4 results, details, PR
    • Previously: Oracle seen pricing aggressively against Workday
    | Jun. 17, 2015, 5:41 PM | 2 Comments
  • Jun. 17, 2015, 4:31 PM
    • Oracle's (NYSE:ORCL) closely-watched software/cloud revenue rose 2% Y/Y in constant currency in FQ4 to $8.4B, towards the low end of a 1%-6% guidance range. In actual dollars, sales fell 6%.
    • Segment performance: Hardware systems revenue rose 5% Y/Y in CC (guidance was -2% to +8%), and fell 4% in dollars to $1.4B. Within software/cloud, SaaS/PaaS (cloud app/app platform) revenue rose 29% in dollars to $416M, and IaaS (cloud infrastructure) revenue rose 25% to $160M. However, traditional software license revenue (hurt by the cloud shift) fell 17% to $3.1B (10% in CC). License update/product support revenue (driven by past deals) was flat at $4.7B, and other services fell 4% to $899M.
    • Financials: Roughly $2B was spent on buybacks, even with FQ3. GAAP costs/expenses rose 5% Y/Y to $6.72B - sales/marketing -1% to $2.21B, R&D +6% to $1.44B, G&A +5% to $278M. Oracle ended FQ4 with $54.4B in cash/marketable securities (much of it offshore), and $42B in debt.
    • Shares have fallen to $41.84 AH. Conference call at 5PM ET (webcast), guidance should be provided.
    • FQ4 results, PR
    | Jun. 17, 2015, 4:31 PM
  • May 29, 2015, 6:29 PM
    • After tumbling on Wednesday in the wake of its FQ1 beat and in-line guidance, Workday (NYSE:WDAY) has continued trending lower. Shares fell 1.5% in regular trading today, hitting their lowest levels since Feb. 2.
    • Though no downgrades have arrived, several sell-side firms have suggested tougher competition is hurting growth, with Oracle's (NYSE:ORCL) cloud HR/HCM software the biggest culprit. Jefferies' John DiFucci: "We believe Oracle (and to a lesser degree, SAP) has been behaving irrationally in the market for almost a year ... while it was likely aggressive prior to this, we believe it became even more aggressive doing almost anything to win deals from Workday."
    • DiFucci sees a method to Oracle's madness. "This irrational behavior may not be so irrational since a loss to Workday is not only a loss of an HCM opportunity, but also a loss of Oracle infrastructure given Workday’s proprietary infrastructure architecture." However, he admits Oracle/SAP's HCM offerings (though improving) "still trail Workday by a meaningful margin."
    • Likewise, Brean's Sarah Hindlian asserts HCM is "becoming incrementally more competitive, with material new pricing pressure from incumbents, while SaaS penetration of the market is maturing." She also thinks Workday's cloud financials software growth is slower than investors were expecting.
    • Cowen's Jesse Hulsing is more positive, even if FQ1 billings were lighter than he forecast. "We are ... encouraged by the trend toward larger, blue chip HCM custs (Coca Cola, etc.) and a more bullish tone regarding the financials pipeline. PT to $101 and view the low $80s as attractive entry point, as we expect growth to improve moving forward."
    • During Oracle's March FQ3 CC (transcript), Mark Hurd didn't pass up the chance to trash-talk Workday. "In the context of HCM, I think ... we have simply engineered now a better product than Workday ... we now win more than half the deals in the United States. Outside the United States, our win rate goes up actually exponentially because of the breadth of our distribution in those markets." Workday might beg to differ with those claims.
    | May 29, 2015, 6:29 PM
Company Description
Oracle Corp. provides enterprise software and computer hardware products and services. The company is organized into three businesses: Software and Cloud, Hardware Systems and Services. The Software and Cloud business operates through the following segments: New Software Licenses and Cloud... More
Sector: Technology
Industry: Application Software
Country: United States