Oracle Beats Earnings Estimates, Meets on Revenue

Oracle reported that cloud services and license support grew 5% year-over-year to $7.3 billion, representing 72% of the company’s revenues.
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Oracle  (ORCL) - Get Report reported fiscal third-quarter adjusted earnings that beat analyst estimates and revenues that met them on Wednesday after the close.

The cloud giant reported adjusted EPS of $1.16 vs. $1.11 expected for the quarter ending in February, while revenues of $10.1 billion were in-line with estimates. Adjusted earnings increased 20% from the same period last year, while revenues increased 3%.

Shares of Oracle were down 2.8% to $70.20 after-hours Wednesday after falling 0.6% during the day. Shares closed at a new high of $72.64 on Tuesday, and are up almost 49% over the last 12 months. 

For the quarter, cloud services and license support grew 5% year-over-year to $7.3 billion, representing 72% of the company’s revenues. Cloud license and on-premise license revenue grew 4% to $1.3 billion, representing 13% of revenues. 

The company reported that its Gen2 Cloud Infrastructure revenue increased over 100%, while its Fusion Cloud ERP revenue grew 30% and its NetSuite Cloud ERP sales were up 24%.

"Oracle's rapidly growing highly-profitable, multi-billion dollar cloud ERP businesses helped drive subscription revenue up 5% and operating income up 10% in the quarter," said Oracle CEO Safra Catz in a statement. "Subscription revenue now accounts for 72% of Oracle's total revenues, and this highly-predictable recurring revenue-stream along with expense discipline are enabling double-digit increases in non-GAAP earnings per share."

The company also announced it had increased the authorization for share repurchases by $20 billion, and raised its quarterly cash dividend to $0.32 per share from the current $0.24. The increased dividend will be paid to stockholders of record as of the close of business on April 8, with a payment date of April 22, 2021.