Oracle CEO Safra Catz delivers a speech during Oracle OpenWorld 2019 on September 17, 2019 in San Francisco, California. Oracle CEO Safra Catz kicked off the second day of Oracle OpenWorld 2019 with an opening speech. The annual convention runs through September 19.
Justin Sullivan | Getty Images
Oracle’s shares fell 3% in trading extended on Wednesday after the corporate software maker released third-quarter fiscal gains that exceeded analysts’ estimates and increased its quarterly dividends from 24 cents per share to 32 cents a share. action.
See how the company did:
- Earnings: $ 1.16 per share, adjusted, against $ 1.11 per share as expected by analysts, according to Refinitiv.
- Recipe: $ 10.09 billion, against $ 10.07 billion as expected by analysts, according to Refinitiv.
Oracle’s revenue increased 3% on an annualized basis in the quarter ended February 28, according to a statement. Revenue grew by almost 2% in the previous quarter.
Oracle’s primary business segment, cloud services and license support, generated $ 7.25 billion in revenue, up 5% year-over-year in the quarter and slightly below FactSet’s consensus estimate of $ 7 , 28 billion.
Oracle’s cloud license and local license revenue totaled $ 1.28 billion, an increase of 4% and above FactSet’s $ 1.21 billion consensus. The company recorded $ 820 million in hardware revenue, down 4% and just below FactSet’s $ 843 million consensus.
In the quarter, Oracle introduced a robust portable server to run cloud workloads and announced the availability of version 21c of its database software as a cloud service.
Last week, Barclays analysts led by Raimo Lenschow raised their Oracle stock rating to the equivalent of buying from the equivalent to hold, citing their belief that cloud revenue growth would accelerate. “We expect shares to be reevaluated, especially as the investor’s appetite for value names and cash flow growth histories continues to improve in a higher-income environment out of the pandemic,” they wrote.
With regard to guidance, analysts surveyed by Refinitiv expected $ 1.28 in adjusted earnings per share for the fourth fiscal quarter and $ 10.84 billion in revenue, which would imply an increase of about 4%.
Excluding the change after hours, Oracle’s shares have risen about 12% since the beginning of 2021, while the S&P 500 index rose 4% in the same period. Shares had risen in February, while some investors were considering the growth potential of cloud services. In the third fiscal quarter, Oracle’s capital expenditures reached $ 1.42 billion, an increase of 25%, while one of Oracle’s cloud competitors, Microsoft, had $ 5.4 billion in capital expenditures in the fourth quarter, an increase of 20%.
Oracle last increased its dividend in 2019, when it rose 26%, compared to the 33% increase announced on Wednesday.
Executives will discuss the results with analysts and issue guidance on a conference call beginning at 5 pm Eastern Time.
These are breaking news. Please check again for updates.
WATCH: See how other Big Tech giants fared after their founders stepped down as CEO