Oracle Earnings: Here’s Why Investors are Not Happy Now

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Oracle Corp. (NASDAQ:ORCL) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 8.31%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Oracle Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.1% to $0.87 in the quarter versus EPS of $0.82 in the year-earlier quarter.

Revenue: Rose 0.41% to $10.96 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Oracle Corp. reported adjusted EPS income of $0.87 per share. By that measure, the company met the mean analyst estimate of $0.87. It missed the average revenue estimate of $11.12 billion.

Quoting Management: “Exadata, Exalogic, Exalytics, SPARC SuperCluster and our other engineered systems grew at a rate of 45% in Q4 as we took considerable market share from our primary competitor – IBM P-Series – which declined 32% in their most recent quarter,” said Oracle CEO, Larry Ellison. “We sold over 1,200 engineered systems in the quarter and over 3,000 during the year. Our fast growing engineered systems business is now more than one-third of our overall hardware business which is one of the reasons we believe hardware will be a growth story in Oracle’s FY14.”

Key Stats (on next page)…

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business