Oracle Misses Q4 Earnings Projection, Shares Plunge in Afterhours (ORCL)
Enterprise software maker, Oracle Corp. (NASDAQ: ORCL) said late last evening that its fiscal fourth-quarter income increased 10%, driven by higher margin offsetting near flat revenue.
Shares slumped about 8.75% in afterhours trading as adjusted earnings missed company’s own initial guidance.
Separately, the Company announced that it will now trade on the New York Stock Exchange with the same ticker ‘ORCL’. The Company also said that its Board of Directors approved a plan to repurchase additional $12 billion worth common shares while the quarterly dividend was doubled to 12 cents a share.
For the fiscal fourth quarter ended May 31, Oracle reported net income of $3.81 billion or 80 cents a share compared to a profit of $3.45 billion or 69 cents a share, in the same quarter of last year. Stripping out onetime items such as stock based compensation, acquisition related costs and some other charges, adjusted earnings stood at 87 cents a share up from 82 cents a share, in the same quarter of last year.
Revenue inched up 0.3% to $10.95 billion.
Earlier in March, the Company projected earnings to come in the range of 85 cents to 91 cents a share on revenue growth of 1% to 4%.
Operating margin improved to 46% from 42% in the same period of last year as operating expenses fell 5.9%.
Revenue, rose 3.6% at its software division, fell 9.5% at its much smaller services segment while at plunged 9.3% at its hardware systems division. This was eight successive quarter in which revenue from hardware systems has declined.
In the fiscal fourth quarter, revenue from cloud subscriptions and software licenses edged up 1%.
More Posts by this author
- Stocks Pare Losses in Late Trading But Still Finish Sharply Lower
- Gold Prices Fall Sharply; Silver Prices Also Tumble
- Stocks Tumble over China Concerns
- Stocks Plunge in Early Trade
- Forex Market Update; U.S. Dollar Mainly Higher
- Gold Prices Extend Losses, Silver Prices Plunge as Well
- U.S. Stocks Futures Fall Sharply
 |
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.
|
