- Oracle’s 3Q adjusted revenue matched estimates at $13.28 billion, showing a 7.1% increase year on year.
- Adjusted earnings per share (EPS) were $1.41, up from $1.22 the previous year, and above the estimated $1.38.
- Cloud revenue, which includes Infrastructure as a Service (IaaS) and Software as a Service (SaaS), was $5.1 billion. This is a 24% increase year on year and slightly above the estimated $5.06 billion.
- When considering constant currency, the increase in cloud revenue (IaaS plus SaaS) also stands at 24%, which is slightly below the estimated 24.7%.
- Cloud services and license support revenue was $9.96 billion, marking a 12% increase year on year, and above the estimated $9.85 billion.
- Cloud license and on-premise license revenue were slightly down at $1.26 billion, a 2.5% decrease year on year, but still above the estimated $1.2 billion.
- Hardware revenue was $754 million, down 7% year on year, and below the estimated $768.9 million.
- Service revenue was also down at $1.31 billion, a 5% decrease year on year, and below the estimated $1.37 billion.
- Adjusted operating income was $5.79 billion, a 12% increase year on year, and above the estimated $5.71 billion.
- Adjusted operating margin stood at 44%, up from 42% the previous year, and above the estimated 42.9%.
- Oracle received 18 buy ratings, 17 hold ratings, and 1 sell rating.
Oracle Corp on Smartkarma
Recently, Oracle Corporation’s performance has been closely examined by analysts on Smartkarma, an independent investment research network. According to research reports by Baptista Research, one of the top analysts on the platform, Oracle’s results for the previous quarter were mixed. While the company’s revenues fell below analyst expectations, they still managed to exceed earnings expectations. This was largely attributed to the strong growth of their cloud services and license support, which saw a significant increase of $1 billion this quarter.
Furthermore, Baptista Research also uncovered the strategies behind Oracle’s booming cloud services and other offerings in another report. The company’s total revenue for the quarter stood at $12.4 billion, an 8% increase from the previous year. This was driven by their strategic cloud applications, the Autonomous Database, and Gen2 Oracle Cloud Infrastructure. In particular, their Infrastructure Cloud services revenue saw a staggering growth of 64%, reaching $5.1 billion. With these positive developments, analysts on Smartkarma have a bullish outlook on Oracle’s future performance.
A look at Oracle Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Oracle Corp, a leading provider of software for managing business information, has been given a Smart Score of 3 out of 5 for its long-term outlook. This score is a composite of several factors including value, dividend, growth, resilience, and momentum. While not the highest score possible, it indicates a positive outlook for the company.
According to the Smartkarma Smart Scores, Oracle Corp scores a 2 in both value and resilience, indicating that the company is reasonably priced and has a solid financial foundation. It also scores a 2 in dividends, meaning it pays out a stable dividend to shareholders. In terms of growth and momentum, Oracle Corp scores a 3, suggesting that the company has potential for future growth and is performing well in the market.
Overall, these scores paint a positive picture for Oracle Corp and its future prospects. With a strong focus on enterprise software and a wide range of products that can be used on various devices, the company is well-positioned for continued success in the long-term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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