Oracle’s Q3 Guidance

From Oracle’s conference call:

We now have nearly $34 billion in cash and marketable securities. And now as we’ve said before, we remain committed to returning value to our shareholders through our technical innovation, acquisitions, stock repurchases and prudent use of debt. At dividend, in this quarter we repurchased 96.1 million shares for a total of 3 billion in the quarter. Over the last 12 months, we’ve repurchased nearly 350 million shares for a total value of $10.2 billion. And earlier this month, the Board declared an accelerated dividend of $0.18 per share for the second, third and fourth quarters, which will be paid out in December.

Now to the guidance. New software license and cloud subscription revenue growth is expected to range from 4% to 14% in constant currency and 3% to 13% in reported dollars. Hardware product revenue growth is expected to range from a negative 10% to flat in constant and reported dollars. And as a result, total revenue growth on a GAAP to non-GAAP basis is expected to range from 2% to 6% in constant dollars, 1% to 5% in U.S. dollars.

Non-GAAP EPS is expected to be somewhere between $0.64 and $0.68 in both U.S. dollars and constant dollars, up from $0.62 last year. GAAP EPS is expected to be between $0.51 and $0.55 in U.S. and constant dollars. This guidance assumes a GAAP tax rate of 24% and a non-GAAP tax rate of 24.5%. And of course, it may end up being a bit different.

Wall Street had been expecting 62 cents per share.

Posted by on December 19th, 2012 at 10:41 am

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