Oracle Slides By in Q3

By Chris Lange Updated Jan 11, 10:00AM EST · Published Mar 14, 4:27PM EDT

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Oracle Slides By in Q3 — © peterkaminski / Flickr

Oracle Corp. (NYSE: ORCL) released fiscal third quarter financial results after markets closed Thursday. The software giant said that it had $0.87 in earnings per share (EPS) and $9.6 billion in revenue, compared with consensus estimates that were calling for $0.84 in EPS and $9.59 billion in revenue. The same period from last year had $0.83 in EPS and $9.78 billion in revenue.

Cloud Services and License Support revenues increased 1% year over year to $6.7 billion, while Cloud License and On-Premise License revenues decreased 4% $1.3 billion. Total Cloud Services and License Support plus Cloud License and On-Premise License revenues were $7.9 billion, unchanged in USD and up 3% in constant currency.

Hardware revenues decreased 8% year over year to $915 million, while services revenue decreased 1% to $786 million.

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Short-term deferred revenues were up 1% to $8.0 billion compared to a year ago. Operating Cash Flow was $14.8 billion during the trailing twelve months.

Oracle did not offer any guidance in the report. However, there are consensus estimates calling for $1.05 in EPS and $11.15 billion in revenue for the coming fiscal fourth quarter.

Safra Catz, Oracle CEO, commented:

I’m pleased with Q3 non-GAAP results as revenues grew 3%, operating income increased 5% and EPS grew 12% in constant currency. Our overall operating margin improved to 44% as our lower margin hardware business continued to get smaller while our higher margin cloud business continued to get bigger. With year-to-date non-GAAP EPS growth rate now at 16% in constant currency, we will comfortably deliver another year of double-digit EPS growth.

Shares of Oracle closed Thursday at $53.03, with a 52-week range of $42.40 to $53.47. The stock has a consensus analyst price target of $52.07. Following the announcement, the stock was up ever so slightly at $53.27 in the after-hours session.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.