Are Oracle Earnings Good Enough For Investors?

By Chris Lange Published Jun 16, 4:17PM EDT

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Are Oracle Earnings Good Enough For Investors? — © maybefalse / Getty Images

Oracle Corp. (NYSE: ORCL | ORCL Price Prediction) released fiscal fourth-quarter financial results after markets closed Tuesday. The firm said that it had $1.20 in earnings per share (EPS) and $10.44 billion in revenue, which compared with consensus estimates of $1.16 in EPS and revenue of $10.67 billion. In the fiscal fourth quarter of last year, the software giant said it had EPS of $1.16 on $11.14 billion in revenue.

Total quarterly revenues were lower by 6%, and down 4% in constant currency, compared to the same period of last year. Cloud Services and License Support revenues totaled $6.8 billion, while Cloud License and On-Premise License revenues were $2.0 billion.

At the same time, short-term deferred revenues were $8.0 billion. Operating cash flow for the trailing 12 months was $13.1 billion.

The board of directors 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 July 15, with a payment date of July 28.

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Safra Catz, Oracle’s CEO, commented:

In Q4, non-GAAP earnings per share grew 5% in constant currency driven by strong performances in both our cloud infrastructure and cloud applications businesses. Leading the way was our Fusion Cloud ERP Suite that grew 35% in constant currency, and our Fusion Cloud HCM Suite grew 29% in constant currency. Our overall business did remarkably well considering the pandemic, but our results would have been even better except for customers in the hardest-hit industries that we serve such as hospitality, retail, and transportation postponing some of their purchases. Still, for the third year in a row, we delivered double-digit constant currency earnings per share growth in FY20.

Oracle stock closed Tuesday at $54.68, in a 52-week range of $39.71 to $60.50. The consensus price target is $51.12. Following the announcement, the stock was down over 3% at $52.70 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.