Apps & Software
Oracle Beats But Guidance Not Until Later (ORCL, IBM, SAP)
Published:
Last Updated:
Oracle Corp. (ORCL-NASDAQ) has posted non-GAAP EPS of $0.37 and revenues of $5.8 Billion. This compares to estimates of $0.35 on a non-GAAP basis on consolidated revenues of $5.615 Billion. The company gave prior guidance of an interpreted $0.34 EPS and $5.4 Billion to $5.6 Billion revenues a quarter ago.
THIS WAS YEAR-END: GAAP earnings per share were up 27% to $0.81. Fiscal year 2007 GAAP revenues were up 25% to $18.0 billion, while annual GAAP net income was up 26% to $4.3 billion. Total GAAP software revenues for the year were up 23% to $14.2 billion with GAAP database and middleware new license revenues up 16% and GAAP applications new license revenues up 32%. Annual GAAP services revenues were $3.8 billion, up 33% compared to the year ago period. Fiscal year 2007 non-GAAP earnings per share were up 25% year over year to $1.01. Annual non-GAAP net income was up 25% to $5.3 billion compared to fiscal year 2006.
The company is claiming better growth over competition: Over the last twelve months Oracle’s application new software license revenues grew at a rate of 32% while SAP’s growth slowed to 10% in their most recent fiscal year. Oracle CEO Larry Ellison: "Oracle’s unique database grid architecture has enabled us to take market share from IBM. Gartner’s just published database research report confirms that Oracle’s database market share has now increased to 47% while IBM’s share declined to 21%. IBM has been unable to match the performance and reliability of Oracle database grids."
Here is how this lines up with the rest of our earnings preview this morning. Unfortunately, Larry Ellison Inc. & Co. did not offer any guidance, so the street has to wait for the conference call guidance before throwing a party or calling a top. The initial reaction has the stock down about 1% to $18.94, and that is after a 1.6% drop to $19.16 today in normal trading.
Jon C. Ogg
June 26, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
