Oracle (ORCL) Earnings for the First Quarter of 2023

Oracle reported revenue that beat expectations on Monday, while quarterly earnings and guidance missed analyst estimates.

Revenue was up 18% in the prior quarter year-over-year, thanks to a contribution from recently acquired software maker Cerner.

Here’s how the company did:

  • gains: $1.03 a share, adjusted for, versus $1.07 a share, as expected by analysts, according to Refinitiv.
  • he won: $11.45 billion versus $11.45 billion as analysts had expected, according to Refinitiv.

Revenue growth in the quarter ended August 31 accelerated from the 5% it achieved in the previous quarter, according to a statement.

Oracle received a $1.4 billion contribution from Cerner after closing the $28 billion acquisition during the quarter.

Oracle CEO Safra Katz speaks during the SelectUSA Investment Summit in Oxon Hill, Maryland, on June 19, 2017. The SelectUSA Investment Summit brings together companies from around the world, economic development organizations from every corner of the nation, and other parties working to facilitate foreign direct investment (FDI). ) in the United States.

Eric Thayer | Bloomberg | Getty Images

Net income fell to $1.55 billion from $2.46 billion in the same period last year. Oracle said it would have seen adjusted earnings per share increase by eight cents had it not been for unfavorable foreign exchange rates.

Oracle Cloud Services and Licensing Support generated $8.42 billion in revenue, an increase of 14% and above the StreetAccount consensus of $8.27 billion.

Oracle CEO Sfra Katz said in a statement that Oracle’s applications and cloud infrastructure businesses now account for more than 30% of total revenue. Quarterly revenue from cloud infrastructure jumped 52% to $900 million.

In addition to completing the Cerner deal, Oracle announced the availability of its database software through Microsoft Azure public clouds running on Oracle’s own cloud infrastructure.

In terms of guidance, Oracle said it expects $1.16 to $1.20 in adjusted earnings per share and 15% to 17% revenue growth in the fiscal second quarter. Analysts polled by Refinitiv were looking for $1.27 per share on revenue of $12.17 billion, which translates to roughly 18% growth.

Katz said it expects exchange rates to have a negative impact of 5% to 6% on revenue and earnings per share affected by up to 7 cents a share in the current quarter.

Oracle Co-Founder, President and CTO Larry Ellison has boasted about additional business coming to Oracle Cloud Infrastructure, or OCI.

“I have personally spoken to some of the most popular Amazon brands that work on AWS,” he said. “The bill for AWS is getting pretty big. And they can save a huge amount of money by moving to OCI. And I expect in the next quarter we will be announcing some brands, and some companies that are going from Amazon to OCI will shock you. I’ll stop there.”

Excluding after-hours movement, Oracle shares are down nearly 12% since the beginning of the year; The S&P 500 is down 14% year-to-date.

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