(Bloomberg) -- Oracle Corp., the maker of database and business software, reported sales that topped analysts’ estimates after cloud-based products picked up momentum with corporate customers.
•Fiscal fourth-quarter revenue including some adjustments was $10.6 billion, exceeding estimates of $10.47 billion. Sales declined about 1 percent from a year ago. Cloud revenue increased 49 percent in the quarter ended May 31.
•Profit excluding certain items was 81 cents a share in the period. Analysts on average had forecast profit of 82 cents.
•Shares gained as much as 3.8 percent in extended trading after closing at $38.64 in New York.
The Big Picture
Oracle has been trying to shift more sales to cloud-based products increasingly demanded by corporate customers. The new cloud services made up about 8 percent of the company’s total sales during the quarter.
•Core cloud revenue is projected to increase 75 percent to 80 percent in the current quarter, Oracle Co-Chief Executive Officer Safra Catz said in a statement.
•Oracle has a “fighting chance” to be first cloud company to reach $10 billion in core cloud revenue, Chairman Larry Ellison said.
•Adjusted earnings in the current quarter are forecast at 56 cents to 60 cents a share. Revenue projected to increase 2 percent to 5 percent. All company forecasts are in constant currency.
•Currency headwinds weighed on results; revenue would have been unchanged with constant currency in fiscal fourth quarter.
•Net income rose 2 percent to $2.8 billion in the quarter from the year-ago period.
•New software license revenue in the quarter was $2.8 billion, down 12 percent.
•“The company’s made a lot of progress in the last two years, and it’s starting to bear fruit. But the cloud still represents less than 10 percent of this company. So, there’s a lot of heavy lifting to go,” said Bill Kreher, an analyst at Edward Jones & Co.
•“All the metrics seem fairly better than we had expected across the board. I think this is one of the cleanest quarters they’ve put up in a long time,” said Joel Fishbein, an analyst at BTIG.
Register or login for access to this item and much more
All Information Management content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access