Oracle Corp Earnings: Double-Digit Growth Again

S&P 500 (NYSE:SPY) component Oracle Corporation (NASDAQ:ORCL) reported net income above Wall Street’s expectations for the third 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 Third Quarter

Results: Net income for the application software company rose to $2.5 billion (49 cents per share) vs. $2.12 billion (41 cents per share) in the same quarter a year earlier. This marks a rise of 18.1% from the year-earlier quarter.

Revenue: Rose 3.1% to $9.04 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Oracle Corporation reported adjusted net income of 62 cents per share. By that measure, the company beat the mean estimate of 54 cents per share. Analysts were expecting revenue of $9.03 billion.

Quoting Management: “Oracle is on track to deliver the highest operating margins in our history this year,” said Oracle President and CFO, Safra Catz. “Oracle can achieve these record margins as an integrated hardware and software company because we are focusing on high margin systems where hardware and software are engineered to work together.”

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the second quarter, net income rose 17.2% and in the first quarter, the figure rose 36.1%.

Revenue has risen for the last four quarters. Revenue increased 2.4% to $8.79 billion in the second quarter. The figure rose 11.6% in the first quarter from the year earlier and climbed 13.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 53 cents versus a mean estimate of net income of 55 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 76 cents a share to 73 cents over the last ninety days. The average estimate for the fiscal year is $2.25 per share, down from $2.33 ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com