Are Oracle Earnings Enough for Investors?

By Chris Lange Updated Dec 13, 6:33AM EST · Published Dec 12, 4:18PM EST

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Are Oracle Earnings Enough for Investors? — © Wikimedia Commons

Oracle Corp. (NYSE: ORCL) released fiscal second-quarter financial results after markets closed Wednesday. The firm said that it had $0.90 in earnings per share (EPS) and $9.62 billion in revenue, compared with consensus estimates that called for $0.88 in EPS and $9.65 billion in revenue. The fiscal second quarter from last year had $0.80 in EPS and $9.6 billion in revenue.

Total quarterly revenues were slightly higher and up by 1% in constant currency compared to the same period last year. Cloud Services and License Support revenues totaled $6.8 billion, while Cloud License and On-Premise License revenues were $1.1 billion.

At the same time, short-term deferred revenues were $8.1 billion. Operating cash flow for the trailing twelve months was $13.8 billion.

The board of directors also declared a quarterly cash dividend of $0.24 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on January 9, with a payment date of January 23.

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Safra Catz, Oracle CEO, commented:

We had another strong quarter in our Fusion and NetSuite cloud applications businesses with Fusion ERP revenues growing 37% and NetSuite ERP revenues growing 29%. This consistent rapid growth in the now multibillion dollar ERP segment of our cloud applications business has enabled Oracle to deliver a double-digit EPS growth rate year-after-year. I fully expect we will do that again this year.

Shares of Oracle closed at $56.47, with a 52-week range of $42.40 to $60.50. The consensus analyst price target is $56.27. Following the announcement, the stock is down about 2% at $55.40 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.