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Oracle Second Quarter Earnings
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Oracle (Nasdaq:ORCL) announced its results for the second quarter on December 18, 2012. Oracle develops, manufactures, markets, distributes, and services software designed to help its customers manage and grow their businesses.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Can Earnings Guidance Accurately Predict The Future?
The Numbers: Oracle's latest numbers were good, as the company announced EPS and revenues that came in ahead predictions. The company reported adjusted net income of 64 cents per share versus the 58 cents per share estimate and revenues of $9.09 billion versus the $8.45 billion estimate. Revenue climbed 3.4% from the same period last year. Oracle's revenue rose last quarter after falling 2.3% to $8.18 billion in the first quarter. Net income for the second quarter was $2.58 billion. According to the reported number, this is up 17.7% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: "Q2 performance was strong and broad based as all geographies reported double-digit revenue growth in new software license and cloud subscriptions," said Oracle President, Mark Hurd. "Applications, middleware and database all had double-digit growth in new software license and cloud subscriptions, with applications leading the pack with growth of over 30%. Our cloud offering of HCM, CRM and ERP applications plus the Oracle database and Java platform services is the strongest and most complete in the industry. Already approaching a one billion dollar run rate, our Cloud business will become much bigger over time."
A Look Back: Net income has increased 14.2% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 18.1% from the year-earlier quarter.
Looking Ahead: When earnings estimates stay consistent leading up to earnings season, this usually shows analysts accurately predicted earnings estimates and business is stable. Be cautious though as this may also be a warnings sign that earnings could come at a huge surprise to the upside or downside as analyst did not correctly predict earnings. Steady earnings estimates mean there is not enough change going on with the company to make analysts change their opinions. When earning estimates are steady, investors can look at the revenue trend for a more fundamental indicator. The average estimate for the fiscal year is $2.53 per share, down from $2.55 90 days ago.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Can Earnings Guidance Accurately Predict The Future?
The Numbers: Oracle's latest numbers were good, as the company announced EPS and revenues that came in ahead predictions. The company reported adjusted net income of 64 cents per share versus the 58 cents per share estimate and revenues of $9.09 billion versus the $8.45 billion estimate. Revenue climbed 3.4% from the same period last year. Oracle's revenue rose last quarter after falling 2.3% to $8.18 billion in the first quarter. Net income for the second quarter was $2.58 billion. According to the reported number, this is up 17.7% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: "Q2 performance was strong and broad based as all geographies reported double-digit revenue growth in new software license and cloud subscriptions," said Oracle President, Mark Hurd. "Applications, middleware and database all had double-digit growth in new software license and cloud subscriptions, with applications leading the pack with growth of over 30%. Our cloud offering of HCM, CRM and ERP applications plus the Oracle database and Java platform services is the strongest and most complete in the industry. Already approaching a one billion dollar run rate, our Cloud business will become much bigger over time."
A Look Back: Net income has increased 14.2% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 18.1% from the year-earlier quarter.
Looking Ahead: When earnings estimates stay consistent leading up to earnings season, this usually shows analysts accurately predicted earnings estimates and business is stable. Be cautious though as this may also be a warnings sign that earnings could come at a huge surprise to the upside or downside as analyst did not correctly predict earnings. Steady earnings estimates mean there is not enough change going on with the company to make analysts change their opinions. When earning estimates are steady, investors can look at the revenue trend for a more fundamental indicator. The average estimate for the fiscal year is $2.53 per share, down from $2.55 90 days ago.
by
Investopedia Staff
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