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Oracle Corporation | $ORCL Stock | Shares Slide After Q3 Earnings Report

Oracle Corporation (NYSE: ORCL)

Shares in Oracle Corp. dropped in the Monday’s after-hours session after the firm’s third-quarter revenue earnings failed to meet Wall Street estimates.

Although earnings did topple analyst expectations, that did not prevent shares in the enterprise software company from slipping 3.7% in the extended session.

The fall increased further to over 6.3% after the company, through its co-Chief Executive Officer Safra Catz presented its forecasts for the fourth-quarter that fell short of investors’ expectations.

ORCL Earnings & Outlook

Oracle Corp. reported a fiscal Q3 net loss of 98 cents a share, or $4.02 billion compared with a profit of 53 cents a share, or $2.24 billion, in the prior-year period. Adjusted earnings per share were 83 cents, excluding the U.S. tax overhaul charges. The firm’s revenue climbed from $9.21 billion in the prior-year period to stand at $9.77 billion, just slightly missing $9.78 billion analyst estimate.

Oracle’s revenue weakness emanated from its Software-as-a-Service (SaaS) business. The firm posted sales of $1.15 billion in its SaaS model representing an increase of 12% from the year-ago period. However, that failed to meet $1.18 billion figure that analysts had been expecting.

Oracle Corporation’s CEO Comments

Oracle Chief Executive Mark Hurd said in a statement that the firm’s SaaS segment is rapidly nearing $5 billion annually despite being in its early days. Hurd added that the management expects to more than “double the segments size very quickly.” The CEO has previously been quoted saying that that “Oracle’s IT future is autonomous.” He believes that the enterprise software company is “uniquely suited to create the world’s most autonomous technologies, thanks to its modern, expanded data centers.” Hurd also hopes that at as the company invests, its margins will keep on expanding and that its global data center expansion, will be able to help it the IT costs of its customers while mitigating risks and competing fiercely.

Oracle Corporation Company Profile

Oracle Corporation is a provider of services and products within the information technology field. It was founded in 1977 and its head offices are located in Redwood City, California. The company’s segments include On-Premise and Cloud Software, Services, and Hardware.

The On-Premise and Cloud Software segment sells, markets, and develops infrastructure, applications, and platform technologies. The company’s software runs on PCs, personal digital assistants, minicomputers, network computers, set-top devices, mainframes, and workstation computers.

The Services segment is made up education services, advanced support services, and consulting services. The Hardware segment is composed of hardware and related products, such as servers, storage, operating systems, industry-specific hardware, management software, virtualization software, and Oracle Engineered Systems, as well as hardware support.

The firm major competitors include International Business Machines Corp. (NYSE:IBM), SAP SE, Intel, Microsoft Corporation (Microsoft), Hewlett-Packard Enterprise, Workday, Inc., and Amazon.com, Inc. -Reuters

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.