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Oracle’s Q3 Earnings Beat Estimates (ORCL)

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Oracle Corporation (NASDAQ: ORCL), an enterprise software company, reported its third-quarter financial results, posting better than expected earnings. Oracle benefited from a pick up in sales of new software licenses in the latest quarter.

The California-based company reported earnings of $2.5 billion, or $0.49 per share for the third quarter, representing an increase of 18% over the same period in the previous year. Excluding one-time items, Oracle reported earnings of $0.62 per share, well above Street estimates of $0.56 per share.


Oracle’s revenue for the third quarter rose 3% to $9 billion, in-line with Street estimates. The company’s new software license revenue rose an impressive 7% in the quarter. The increase in new license sales suggests that the company has bounced back from the problems it faced in the second quarter.

Safra Catz, President and CFO of Oracle, said that the company is on track to deliver the highest operating margins in its history this year. Catz further said that Oracle can achieve these record margins as an integrated hardware and software company because it focusing on high margin systems where hardware and software are engineered to work together.

Mark Hurd, President of Oracle, meanwhile, said that hardware revenue for the company’s engineered systems grew 139% in the third quarter and going into the fourth quarter, the company has a record pipeline.

Larry Ellison, CEO of Oracle, said that in the third quarter the company delivered the hardware and software for its new extreme performance Exalytics In-Memory Machine.

Despite reporting better than expected earnings, Oracle shares are down in trading today. At last check, the stock was trading 1.11% lower at $29.76 on above average volume of 60.64 million. The stock fell to an intra-day low of $29.65.

Oracle shares have fallen 5.48% in the last one year.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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