Oracle (ORCL) Earnings for the First Quarter of 2023

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

inspiration It reported revenue that met expectations on Monday, while earnings and quarterly 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 accelerated in the quarter ended August 31 from 5% in previous quarteraccording to statement.

Oracle received a $1.4 billion contribution from Cerner, following a $28 billion acquisition Closed during the quarter.

Net income fell to $1.55 billion from $2.46 billion in the same quarter 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. Revenue from cloud infrastructure totaled $900 million in the quarter, up 52%.

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In addition to completing the Cerner deal, Oracle announce Availability of its own database software through Microsoft Azure public cloud, but 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 to be affected by up to 7 cents per share in the second quarter of the fiscal year.

Larry Ellison, co-founder, CEO and CTO of Oracle, boasted about additional business coming to Oracle Cloud Infrastructure, or OCI.

“I personally have been talking to each other Amazon He said, “The most popular brands that are working on AWS. The bill for AWS is going up a lot. And they can save a huge amount of money by moving to OCI. And I expect that in the next quarter we will announce some brands, some companies are moving from Amazon to OCI which will shock you. I will stop there. limit”.

Excluding after-hours movement, Oracle shares are down about 12% so far in 2022, while the S&P 500 is down about 14% over the same time period.

This story is developing. . Please check back for updates

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