The California-based multinational computer technology corporation, Oracle, announced its earnings report for the fiscal second quarter on Thursday. Having missed the analysts’ forecast for revenue, the stock was seen trading 3% lower in extended trading on Thursday.
Oracle Noted $9.61 Billion In Revenue Versus The Analysts’ Estimate Of $9.65 Billion
Based on Refinitiv’s data, experts had anticipated the company to post $9.65 billion in revenue in the second quarter. In terms of earnings per share (EPS), the estimate was capped at 88 cents per share (excluding a few items). According to the performance results, however, while the company printed better than expected EPS in Q2 at 90 cents per share, the revenue was reported a little shy of the estimate at $9.61 billion.
The report further added that on an annualized basis, the computer technology company has noted a 0.5% improvement in revenue in its fiscal second quarter that concluded on November 30th. The license support and cloud services segment of Oracle’s business generated a total revenue of $6.81 billion that marked a 3% growth year over year. According to FactSet, analysts had estimated a narrowly higher $6.82 billion in revenue from the aforementioned business sector.
The On-Premise license and Cloud license segment recorded $1.13 billion in revenue that was highlighted as 7% lower as compared to last year. The revenue from this segment missed the FactSet’s consensus forecast of $1.17 billion as well.
Revenue from the hardware component of the business was printed at $871 million. Having declined 2% year over year, the revenue was still better than the analysts’ estimate of $846.5 million. Lastly, the services segment dropped by 1% in terms of revenue as compared to last year, however, at $806 million, it was in line with what the experts had anticipated.
Chairman Larry Ellison Says There Are No Plans Of Hiring A Co-CEO To Replace Mark Hurd
The fiscal second-quarter saw the sad demise of Oracle’s co-CEO, Mark Hurd, at the age of 62. In a conference call on Thursday, Chairman Larry Ellison declared that the company currently doesn’t have any plans of hiring a new co-CEO to replace Hurd. Moving forward, CEO Safra Catz will assume the role of a sole leader at Oracle.
The year-to-date performance for Oracle has been fairly upbeat in the stock market in 2019. Having started the year at around $45 per share, the stock printed a yearly high of around $60 in July. Following the 3% drop on Thursday, share prices are currently settling around $55 on Friday. Oracle has traded above the opening level in 2019 so far.