Oracle (ORCL) Shares Down After Earnings Miss

Shares of the Oracle Corporation (ORCL) were down -2.62 or -6.16 percent to $39.89 in pre-market trading this morning, after the company announced lower than expected fourth quarter earnings late yesterday. Oracle stock closed at $42.51, down -0.30 or -0.70 percent in Thursdayâ s regular trading session.

Redwood City, California based Oracle Corporation is the worldâ s third largest maker of computer software by revenue after Microsoft (MSFT) and IBM (IBM). The company specializes in computer hardware and database management systems and after its 2010 acquisition of Sun Microsystems, in Internet based software.
The company has recently become the second largest SaaS or Software as a Service provider in the world. Oracle reported fourth quarter earnings of $0.92 per adjusted share on revenue of $11.3 billion versus $0.87 on revenue of $10.95 in the same period one year ago. The analyst consensus was for adjusted earnings of $0.95 per share on revenue of $11.48 billion. For the full 2013 fiscal year, Oracle reported earnings of $2.87 excluding certain items and $38.3 billion in revenue, versus $2.68 on $37.18 billion for its 2013 fiscal year. Analysts expected full year earnings of $2.91 per share on $38.45 billion in revenue. The company missed on both full year and fourth quarter results both this year and last year and has been hard pressed to meet analyst expectations for some time. Oracle has missed on revenue in three out of the last four quarters. Nevertheless, both earnings and revenue were higher on a year to year basis along with improvements in other areas. Oracle reported an increase of +4 percent to +$8.9 billion in software and cloud revenue, as well as Software as a Service (SaaS) and Platform as a Service (PaaS) where revenue increased +25 percent to $322 million. Infrastructure as a Service (IaaS) revenues were also up +13 percent to $128 million. Hardware systems revenues increased +2 percent to $1.5 billion, with software license updates and product support revenue increasing +7 percent to $4.7 billion. New software licenses were flat however at $3.8 billion. Total revenues for 2013 were up +3 percent. Lawrence J. Ellison, Oracle Co-Founder and Chief Executive Officer and Director said in a post earnings release conference with analysts that, â

Published on Jun 20, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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