Does Oracle Deserve More Credit for Q2 Results?
Oracle reported its most recent quarterly results after the closing bell on Thursday.
Oracle Corp. (NYSE: ORCL | ORCL Price Prediction) released fiscal first second-quarter financial results after markets closed Thursday. The firm reported $1.06 in earnings per share (EPS) and $9.8 billion in revenue which compared with consensus estimates of $1.00 in EPS and revenue of $9.79 billion. In the fiscal second quarter of last year, the software giant reported EPS of $0.90 on $9.62 billion in revenue.
Total quarterly revenues were higher by 2%, compared to the same period of last year. Cloud Services and License Support revenues totaled $7.1 billion, while Cloud License and On-Premise License revenues were $1.1 billion.
Management noted that Oracle’s highly profitable multi-billion dollar Fusion and NetSuite Cloud ERP applications businesses grew revenue 33% and 21% respectively in second quarter. These two strategic cloud applications businesses are major contributors to Oracle’s increased operating earnings and consistent earnings per share growth.
At the same time, short-term deferred revenues were $8.1 billion. Operating cash flow for the trailing 12 months was $14.0 billion.
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The board of directors declared a quarterly cash dividend of $0.24 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on January 7, with a payment date of January 21.
On the books, cash, cash equivalents and marketable securities totaled $38.6 billion at the end of the quarter, versus $43.1 billion at the end of the previous fiscal year.
The company did not issue any guidance for the fiscal third quarter. Analysts are calling for $1.04 in EPS and $9.95 billion in revenue for the coming quarter.
Oracle stock closed Thursday at $59.48, in a 52-week range of $39.71 to $62.60. The consensus price target is $63.31. Following the announcement, the stock was initially down about 1% at $58.60 in the after-hours session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
