Oracle Financials Break Virtually Even, Cloud Sales Improve
Oracle reported revenue of $9.33 billion for the quarter, but Wall Street analysts had expected it to record $9.46 billion in revenue.Oracle reported another mixed financial quarter, breaking even on quarter-to-quarter revenue and showing a healthy return on stock investment, but missing Wall Street analysts' expectations on overall performance. On March 17, Oracle posted adjusted third-quarter earnings per share of 68 cents, meeting Wall Street projections. But it missed estimates on its revenue, which totaled $9.33 billion for the quarter. Analysts had expected Oracle to report $9.46 billion in revenue, according to a consensus estimate from Thomson Reuters. In choosing to look on the bright side for its investors, the company noted that its growth in the cloud sector has been faster than senior executives anticipated. While the cloud software division represents only a small portion of the company's overall business, total SaaS (software-as-a-service), PaaS (platform-as-a-service) and IaaS (infrastructure-as-a-service) cloud revenue was up an impressive 29 percent to $527 million. "Our cloud results were much, much better than expected, as we're clearly growing faster than Salesforce," Oracle CEO Safra Catz said on the company's earnings call.
The company's stock price improved about 2 percent from its close at $42.87, selling at $43.70 in after-hours trading at 5 p.m. Pacific time on March 17.