This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Oracle's Fiscal 4Q Sales Disappoint Wall St. Again

Ellison, an executive known for brash statements, promised analysts during a Thursday conference call that Oracle is poised to unveil a series of "startling" partnerships with Salesforce, NetSuite and other cloud computing services that will rely on Oracle's latest database software. "These partnerships in the cloud I think will reshape the cloud and reshape the perception of Oracle technology in the cloud," Ellison said. He added that more details will be provided next week.

In an apparent attempt to win over skeptical investors, Oracle is doubling its quarterly dividend. A payment of 12 cents per share will be made on Aug. 2 to shareholders of record as of July 12. Oracle will also try to boost its stock by spending an additional $12 billion buying back its own shares. The stock will move from the Nasdaq exchange to the New York Stock Exchange next month if Oracle wins approval of an application announced Thursday.

The Redwood Shores, Calif., company earned $3.8 billion, or 80 cents per share, in the three months ending in May. That represents a 10 percent increase from income of $3.5 billion, or 69 cents per share, at the same time last year.

If not for certain expenses unrelated to its ongoing business, Oracle said it would have earned 87 cents per share. That matched the average estimate among analysts surveyed by FactSet.

But revenue remained unchanged at $10.9 billion â¿¿ about $170 million below analyst forecasts.

In a particularly telling sign, Oracle's sales of new software licenses and cloud computing subscriptions increased just 1 percent from last year. If not for currency fluctuations that undercut Oracle, the company said the increase would have been 2 percent. A relatively strong U.S. dollar means sales made in other currencies get converted into fewer dollars.

The mid-range of an estimate provided by Oracle's management in March called for a 6 percent increase, excluding differences in currency rates. New software licenses and subscriptions are considered to be a key measure of a software maker's health because they set up a steady flow of future revenue.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,890.79 -85.52 -0.48%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs