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Oracle Corporation | $ORC Stock | Oracle Q4 Earnings Flew Above Wall Street Expectations

Oracle Corporation (NYSE: ORCL)

Oracle revealed strong fourth-quarter earnings and revenue on Tuesday evening, but issued a weak outlook that caused its stock to fall. Total revenue grew by 3% billion during the three months ended May 31.

However, the software giant failed to reveal the amount of revenue it generated from its new software license business, overshadowing its solid performance.

ORCL stock oscillated after the firm announced the results, before falling as low as 4.8% to $44.03 in the after-hours session.

ORCL Earnings & Outlook

The company reported a net income of $3.41 billion, or $0.82 per share for the quarter, compared to $3.23 billion, or $0.76 per share, in the fourth quarter of 2017.

Revenue was $11.3 billion, up 3% from last year’s comparable period, and above the consensus analyst forecast of $11.2 billion.

Its cloud services and licenses support business generated a revenue of $6.77 billion, up 8.2%. Adjusted for one-time items, earnings per share came in at $0.99.

Analysts polled by Thompson Reuters had expected adjusted earnings per share of $0.94 on a revenue of $11.18 billion.

For the first fiscal quarter of fiscal 2019, the firm sees adjusted earnings of between $0.67 to $0.69 per share, and a revenue growth of 1-3 percent.

Oracle CEO Comments

Last year, I forecast double-digit non-GAAP earnings per share growth for FY18 and we delivered 14% growth this year, largely driven by strong growth in our cloud businesses. Looking ahead to FY19, I expect revenue growth will enable us to deliver double-digit non-GAAP earnings per share growth once again,” said Oracle Chief Executive Officer, Safra Catz.

Oracle Corporation Company Profile

Oracle Corporation engages in the development, manufacture, marketing, and sale of infrastructure technologies, support applications, and platforms for information technology environments internationally.

It operates under three segments namely; Hardware, Cloud and On-Premise Software, and Services.

The company licenses its Oracle Fusion Middleware software that builds, deploys, secures, accesses, integrates and automates business applications.

Its Oracle Database software enables manipulation, retrieval and storage of data. Further, it provides Java software, big data solutions, and mobile computing software to cater for business development needs.

In addition, it offers enterprise resource planning, talent management and human capital, project portfolio management, customer relationship management and customer experience, business analytics, procurement, enterprise performance management, and supply chain management, as well as financial governance and management.

Additionally, it offers Oracle Engineered Systems, operating systems, servers, management software, storage, virtualization, industry-specific hardware, and other hardware-related products.

It also offers product support contracts and software license updates; development software, middleware, and database, as well as cloud-based infrastructure and platforms.

Additionally, the company offers IT strategy alignment, initial software integration and implementation, enterprise architecture design and planning, application integration and development, security assessments, and customer education and support, as well as ongoing software upgrade and enhancements services.

Oracle Corporation was founded in 1977 by Edward A. Oates, Robert Nimrod Miner, and Lawrence Joseph Ellison. Its headquarters are based in Redwood City, California. -Reuters

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