Larry Ellison, co-founder and CEO of Oracle Corp, speaks during the Oracle OpenWorld conference in San Francisco on October 22, 2018.
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inspiration On Monday, it reported quarterly earnings that beat Wall Street expectations. Shares rose 13% in extended trading.
Here's what the company did in its fiscal third quarter ended February 29, compared to estimates from LSEG, formerly known as Refinitiv:
Earnings per share: $1.41 adjusted vs. $1.38 expected Revenue: $13.28 billion vs. $13.3 billion expected
For the fiscal fourth quarter, Oracle said it expects earnings in the range of $1.62 to $1.66 per share. Analysts were expecting $1.64 in adjusted earnings per share, according to LSEG. Revenue growth will be between 4% and 6% compared to sales of $13.8 billion last year. The midpoint of that range would equal revenue of about $14.5 billion, while analysts had expected just over $14.7 billion.
Oracle CEO Safra Katz said the company is committed to meeting previously announced goals of $65 billion in sales by fiscal 2026. “Some of these goals may be too conservative given our momentum,” Katz said.
Revenue rose 7% in the quarter from $12.4 billion a year earlier. Net income rose 27% to $2.4 billion, or 85 cents per share, from $1.9 billion, or 68 cents per share, a year earlier.
Oracle's cloud services and license support segment, its largest business, saw sales rise 12% to $9.96 billion, slightly beating StreetAccount's forecast of $9.94 billion. The company attributed this increase to strong demand for its artificial intelligence servers.
Katz said the company added several “large new cloud infrastructure” contracts during the quarter. Oracle said the company's cloud revenue, which was reported as part of its cloud services unit, rose 25% year over year to $5.1 billion.
“We signed several large deals this quarter and have more in the pipeline,” Katz told investors on the earnings call.
Oracle CEO Larry Ellison cited increased business from Microsoft on an earnings call.
“We're building 20 data centers from Microsoft and Azure. They just ordered three more data centers this week,” Ellison said.
The company's other units did not perform as well.
Cloud licenses and on-premises sales fell 3% to $1.26 billion, slightly above StreetAccount forecasts. Hardware revenue fell 7% to $754 million, while sales in the company's services division fell 5% to $1.31 billion, both below StreetAccount forecasts.
Before Monday's report, Oracle shares were up 8.7% for the year, slightly outperforming the S&P 500.
