Cramer is positive on Oracle stock despite revenue miss

Oracle Corporation (NYSE: ORCL) is trading down today after reporting weaker-than-expected revenue for its third financial quarter.

Oracle stock down on soft guidance

Shareholders are also disappointed because the company’s guidance for revenue came in slightly below estimates as well. Oracle is now calling for $13.62 billion to $13.85 billion in revenue for its current quarter on up to $1.60 of adjusted per-share earnings.

In comparison, analysts were at $13.75 billion and $1.47 a share, respectively. On CNBC’s “Squawk on the Street”, Jim Cramer said:

Oracle Corporation lifts its quarterly dividend

On the plus side, Oracle Corporation raised its dividend to 40 cents per share – a 25% increase versus the same quarter last year. According to Cramer:

His constructive view is in line with Guggenheim that reiterated its “buy” rating on this tech stock today. The firm’s $115 price objective suggests more than 35% upside from here.

Notable figures in Oracle’s Q3 earnings report

• Net income printed at $1.90 billion versus year-ago $2.32 billion
• Per-share earnings also declined from 84 cents to 68 cents
• Adjusted EPS came in at $1.22 as per the earnings press release
• Revenue climbed 18% on a year-over-year basis to $12.40 billion
• FactSet consensus was $1.20 a share on $12.43 billion in revenue

Other notable figures in the earnings report include a 17% increase in cloud services and license support revenue – also better than expected. Oracle stock is now roughly flat for the year.