Oracle beats Wall Street estimates in the fiscal second quarter

Written by: Wajeeh Khan
December 11, 2020
  • Oracle beats Wall Street estimates in the fiscal second quarter.
  • The tech company forecasts up to 4% growth in Q3 revenue.
  • Oracle rolled out Analytics Service for MySQL database last week.

Oracle Corp. (NYSE: ORCL) published its financial results for the fiscal second quarter on Thursday that topped analysts’ estimates for earnings and revenue. The company’s guidance for the future was also better than expected on Thursday.

Oracle initially slipped in extended trading on Thursday but regained the loss later on. At £44.82 per share, it is now more than 10% up year to date in the stock market after recovering from a low of £33.59 per share in March. If you’re interested in investing in the stock market, you’ll need a reliable broker – here’s a list of the top few to make selection easier for you.

Oracle’s Q2 financial results versus analysts’ estimates

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Oracle reported £1.83 billion of earnings in the second quarter that translates to 60.09 pence per share. The company said that it generated £7.36 billion of revenue in the recent quarter versus the year-ago figure of £7.23 billion.

On an adjusted basis, the computer technology corporation earned 80 pence per share in Q2 versus 67.60 pence per share in the same quarter last year. According to FactSet, experts had forecast the company to record £7.34 billion of sales in the second quarter. Their estimate for adjusted per-share earnings was capped on a slightly lower 75 pence.

CEO Safra Catz commented on the earnings report on Thursday and said:

“Our highly profitable multibillion-dollar Fusion and NetSuite Cloud ERP applications businesses grew revenue 33% and 21%, respectively, in Q2. These two strategic cloud-applications businesses are major contributors to Oracle’s increased operating earnings and consistent earnings-per-share growth.”

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Oracle’s guidance for the fiscal third quarter

For the fiscal third quarter, Oracle now forecasts its adjusted earnings to fall in the range of 82 pence per share to 85 pence per share. For revenue, the company expects a 2% to 4% growth in Q3. Earlier this week, Oracle rolled out Analytics Service for MySQL database.

In comparison, analysts expect the American multinational to see 78 pence of adjusted earnings per share in the current quarter and 1.4% of annualised growth in revenue. Oracle had also posted estimates-beating result for the prior quarter (Q1) in September.

Oracle performed fairly upbeat in the stock market last year with an annual gain of a little under 20%. At the time of writing, the Redwood Shores-based company is valued at £134.52 billion and has a price to earnings ratio of 18.65.