Oracle's Profit Solid, but Slow Cloud Sales Hamper Revenue
If there is a nagging issue for the company, it's a slowdown in software sales as newer-gen companies cut into its installed base.Oracle always shows a profit, but it nonetheless has missed Wall Street earnings estimates in half of its past eight quarters, which can have a major impact on the stock price. However, this wasn't a problem in the IT giant's Q1 2015 report, made public Sept. 16. Oracle beat profit expectations, but final results also showed overall revenue didn't quite meet expectations. The Redwood City, Calif.-based IT giant reported net income of $1.75 billion, or 40 cents a share, on sales of $8.45 billion. That's still a lot of money, no matter how one looks at it. If there is a nagging issue for the company, it's a slowdown in cloud software sales as newer-gen companies continue to cut into the older company's on-premises installed base.
Oracle, trailing Salesforce and battling other providers, such as Workday, SAP, IBM, Amazon and Hewlett-Packard, reported total cloud revenues of $611 million; Bloomberg analysts expected $630 million.