The software giant reported $0.69 in earnings per share and $9.60 billion in revenue, against Thomson Reuters consensus estimates of $0.68 in earnings per share and $9.52 billion in revenue. The second quarter from the previous year had $0.69 in earnings per share and $9.28 billion in revenue.
Oracle reported its revenues by segment as:
- Software and Cloud, $7.33 billion
- Hardware Systems, $1.33 billion
- Services, $935 million
The board of directors declared a quarterly cash dividend of $0.12 per share of outstanding common stock.
New co-CEO Mark Hurd said:
Total Q2 new cloud bookings grew at a rate of more than 140%. We now have over 600 ERP Fusion Cloud customers — that’s five-times more ERP customers than Workday.
Former CEO and current CTO, Larry Ellison, commented on the future of Oracle’s cloud segment:
By Q4 of this year we expect our new cloud bookings to exceed $250 million. Next fiscal year our new cloud bookings will be well over the billion dollars mark.
A few key analyst firms weighed in on Oracle’s position recently:
- Morgan Stanley raised shares of Oracle to an Overweight rating from Equal Weight and moved its price target up to $50 from $45, on December 15.
- Piper Jaffray initiated coverage with a Neutral rating and a price target of $44 on December 12.
- J.P. Morgan initiated coverage with an Underweight rating and a price target of $38 on December 2.
Shares of Oracle closed Wednesday up over 1% at $41.18. Following the release of the earnings report, the initial response in the after-hours market was positive and shares were up over 3% at $42.53.
The stock has a consensus analyst price target of $43.68 and a 52-week trading range of $33.70 to $43.19. Oracle has a market cap of over $183 billion.