oracle Shares rose 9% in prolonged trading on Monday after the database software provider reported fiscal first-quarter results that beat Wall Street estimates.
Here’s how the corporate performed in comparison with the LSEG consensus:
- Earnings per share: $1.39 adjusted vs. $1.32 expected
- Revenue: $13.31 billion in comparison with expected $13.23 billion
Oracle's revenue rose 8% from $12.45 billion a 12 months earlier, in keeping with a opinionNet income rose to $2.93 billion, or $1.03 per share, from $2.42 billion, or 86 cents per share, within the year-ago quarter.
With an after-hours price of about $153, Oracle is on target to hit a record on Tuesday. The stock's previous highest close was $145.03 in July. Before the report, Oracle had risen about 34 percent thus far this 12 months, compared with the S&P 500's 15 percent gain.
For the present quarter, Oracle expects revenue growth of 8 to 10%, said CEO Safra Catz within the conference call. According to LSEG, analysts had expected growth of just below 9%. The company expects adjusted earnings per share of $1.45 to $1.49 for the second quarter. Analysts had expected earnings of $1.47 per share.
The company said its cloud services and license support business generated revenue of $10.52 billion, up 10 percent from the previous 12 months and above the Street Account consensus of $10.47 billion.
Oracle's cloud and on-premises licensing segment reported revenue of $870 million, up 7% and exceeding the $757.6 billion forecast by StreetAccount.
Cloud infrastructure revenue was $2.2 billion, up 45 percent, an acceleration from the previous quarter, when revenue grew 42 percent.
“I would say that demand still exceeds supply. But I can live with that,” Catz said within the phone call.
Oracle is currently designing an information center that can devour greater than a gigawatt of power and can feature three modular nuclear reactors, Larry Ellison, Oracle co-founder, chairman and chief technology officer, said on the conference call.
Over time, Ellison says, Oracle could operate 2,000 data centers as an alternative of 162 today. But not all of them require enormous amounts of electricity.
“The smallest ones are about 150 kilowatts,” Ellison said. “And we'll go down to 50 kilowatts.”
During the quarter, Oracle announced the opening of a second cloud region in Saudi Arabia and said its database software can be available through Google's public cloud.
In a separate statement on Monday, Oracle said said It would enter right into a partnership with the market leader in cloud infrastructure Amazon Web Services to enable its database services on dedicated hardware.
image credit : www.cnbc.com