Larry Ellison, chairman and co-founder of Oracle Corp., speaks during the Oracle OpenWorld 2017 conference in San Francisco on Oct. 1, 2017.
David Paul Morris | Bloomberg | Getty Images
Oracle shares rose 9% in extended trading on Monday after the database software vendor reported fiscal first-quarter results that topped Wall Street estimates.
Here is how the company did compared to LSEG consensus:
- Earnings per share: $1.39 adjusted vs. $1.32 expected
- Revenue: $13.31 billion vs. $13.23 billion expected
Oracle’s revenue increased 8% from $12.45 billion a year ago, according to a statement. Net income rose to $2.93 billion, or $1.03 per share, from $2.42 billion, or 86 cents per share, in the same quarter a year ago.
At its after-hours price of about $153, Oracle is on pace to reach a record on Tuesday. The stock’s highest close to date was $145.03 in July. Prior to the report, Oracle was up about 34% so far this year, compared to the S&P 500’s 15% gain.
For the current quarter, Oracle expects revenue growth of 8 to 10%, CEO Safra Catz said on the earnings call. Analysts were expecting growth of close to 9%, according to LSEG. The company sees adjusted earnings per share for the fiscal second quarter of 1.45 to $1.49. Analysts were looking for earnings of $1.47 per share.
The company said its cloud services and license support business generated $10.52 billion in revenue. That was up 10% from a year earlier and higher than the StreetAccount consensus of $10.47 billion.
Oracle’s cloud and on-premises license segment had $870 million in revenue, up 7%, and more than StreetAccount’s $757.6 billion consensus.
Revenue from cloud infrastructure came to $2.2 billion, up 45%. That is an acceleration from the prior quarter, during which revenue went up 42%.
“I will say that demand is still outstripping supply. But I can live with that,” Larry Ellison, Oracle’s co-founder, chairman and chief technology officer, said on the call.
During the quarter, Oracle announced the opening of a second cloud region in Saudi Arabia and said its database software will be available through Google’s public cloud.
In a separate statement on Monday, Oracle said it would partner with cloud infrastructure market leader Amazon Web Services to enable its database services on dedicated hardware.
