Oracle Earned 68 Cents Per Share

Oracle‘s ($ORCL) earnings are out. The company earned 68 cents per share for fiscal Q3, which is at the low end of their range of 68 to 72 cents per share. Revenue came in at $9.31 billion which was below consensus of $9.36 billion.

Net income in the third quarter rose 2.4 percent to $2.57 billion, or 56 cents a share. New software-license and cloud-subscription sales, a closely watched indicator of future revenue, rose 3.6 percent to $2.42 billion, the company said today.

Oracle is the second-largest maker of business applications behind SAP AG, and it entered the computer-server market with the 2010 acquisition of Sun Microsystems. Hardware product sales rose 8 percent to $725 million during the quarter.

Oracle is under pressure in its three main businesses, Thill said. Microsoft Corp. has gained ground in database software, along with newer companies such as MongoDB Inc. and Couchbase Inc. that are chipping away at more established providers. Other customers are leaving Oracle because they’re putting data in the cloud with vendors like Amazon.com Inc.

In business applications, programs that handle tasks like finance, client management and human resources, customers are defecting to cloud-based suppliers like Salesforce.com (CRM) and Workday. In hardware, Oracle has “missed more quarters than they’ve made,” Thill said.

The stock is down about 5% in the after-hours market.

Posted by on March 18th, 2014 at 4:59 pm


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