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Oracle Beats Earnings and Sales Estimates, but Shares Fall

Oracle reported fiscal fourth quarter results that topped analyst estimates, and also declared a quarterly dividend.

Shares of Oracle Corp.  (ORCL) - Get Oracle Corporation Report dropped Tuesday after the the enterprise software company reported fiscal fourth-quarter results.

The Austin, Texas-based company reported fourth-quarter, non-GAAP earnings of $1.54 per share on revenue of $11.2 billion, an 8% year-over-year increase. Analysts were expecting the company to report adjusted fourth-quarter earnings of $1.31 per share on revenue of $11.02 billion. 

Oracle shares were down 2.2% to $79.85 following the release of results after the close on Tuesday. Shares are up 23% year-to-date compared to 13% for the S&P 500.

"The world's two most popular databases are the Oracle Autonomous Database and Oracle MySQL," said Oracle founder and current chairman and CTO Larry Ellison in a statement. "While our Oracle Database business as measured by revenue currently dwarfs our MySQL database business -- that is about to change because the latest version of Oracle MySQL has been upgraded."

The company's board declared a quarterly cash dividend of 32 cents per share to be paid July 29 to share holders of record on July 15. 

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Cloud services and license support revenues for the quarter rose 8% year-over-year to $7.4 billion, while cloud license and on-premise license revenues rose 9% to $2.1 billion year-over-year. 

Operating cash flow rose 21% to a record $15.9 billion over the trailing twelve months. 

"Our Q4 performance was absolutely outstanding with total revenue beating guidance by nearly $200 million, and non-GAAP earnings per share beating guidance by $0.24," said Oracle CEO, Safra Catz. "Our multi-billion dollar Fusion and NetSuite cloud applications businesses saw dramatic increases in their already rapid revenue growth rates."

During the quarter, Oracle lost a Supreme Court ruling that overturned a federal appeals court decision in the company's copyright dispute with Alphabet  (GOOGL) - Get Alphabet Inc. Class A Report

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