Oracle Earnings Cheat Sheet: Profits Climb By Double Figures Again

S&P 500 (NYSE:SPY) component Oracle Corporation (NASDAQ:ORCL) reported its results for the second quarter. Oracle develops, manufactures, markets, distributes, and services software designed to help its customers manage and grow their businesses.

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Oracle Earnings Cheat Sheet for the Second Quarter

Results: Net income for the application software company rose to $2.19 billion (43 cents per share) vs. $1.87 billion (37 cents per share) in the same quarter a year earlier. This marks a rise of 17.2% from the year earlier quarter.

Revenue: Rose 2% to $8.79 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ORCL reported adjusted net income of 54 cents per share. By that measure, the company fell short of mean estimate of 55 cents per share. It fell short of the average revenue estimate of $9.23 billion.

Quoting Management: “Non-GAAP operating margins increased to 45% in Q2,” said Oracle President and CFO, Safra Catz, “and we expect those margins to keep growing. Operating cash flow over the last twelve months grew to $13.1 billion; that’s up a remarkable 45% compared to the preceding twelve month period.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 36.1% and in the fourth quarter of the last fiscal year, the figure rose 35.8%.

Revenue has risen the past four quarters. Revenue increased 11.6% to $8.37 billion in the first quarter. The figure rose 13.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 36.9% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by one cent, and in the fourth quarter of the last fiscal year, it was ahead by 4 cents.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 56 cents a share to 57 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $2.30 per to share to $2.33.

Competitors to Watch: Intl. Business Machines Corp. (NYSE:IBM), Hewlett-Packard Company (NYSE:HPQ), Microsoft Corporation (NASDAQ:MSFT), SAP AG (NYSE:SAP), Intel Corporation (NASDAQ:INTC), Apple Inc. (NASDAQ:AAPL), Red Hat, Inc. (NYSE:RHT), EMC Corporation (NYSE:EMC), CA, Inc. (NASDAQ:CA), and Adobe Systems Incorporated (NASDAQ:ADBE).

Stock Performance: Shares of ORCL were up 1.9% from the previous close.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)