Oracle Shares Slip After Database Software Firm's Earnings Top Estimates, Revenue Misses

Cloud-based enterprise planning tool sales surge.
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Shares of Oracle Corp. (ORCL) - Get Report fell in after-hours trading Thursday after the software provider reported fiscal-second-quarter earnings that topped analyst estimates but revenue below expectations.

The Redwood City, Calif., company's shares fell 2.6% to $55 in after-hours action.

Oracle reported non-GAAP net income of $3 billion, or 90 cents a share, on revenue of $9.61 billion.

Analysts had been expecting the company to make 89 cents a share on sales of $9.65 billion, based on a survey by FactSet.

The company had offered guidance of 87 cents to 89 cents a share on Sept. 12. The shares have risen 4.5% since then.

For the year-earlier period the company posted earnings of 80 cents a share on sales of $9.6 billion, based on FactSet data.

“We had another strong quarter in our Fusion and NetSuite cloud applications businesses with Fusion [Enterprise Resource Planning] revenues growing 37% and NetSuite ERP revenues growing 29%,” Oracle CEO Safra Catz said in a statement. 

Growth in the ERP segment of its cloud applications business “has enabled Oracle to deliver a double-digit EPS growth rate year after year. I fully expect we will do that again this year,” Catz said.

In the coming quarter analysts are forecasting net income of $3.2 billion, or 97 cents a share, on sales of $9.8 billion.