Daily Management Review

Oracle exceeds market expectations


06/20/2018


Oracle's revenue in the IV quarter of 2018 financial year increased by 3%, and so did profit (5% up). At the same time, the company's revenues exceeded Wall Street expectations thanks to the rapidly growing cloud business.



Peter Kaminski
Peter Kaminski
Following the results of the three-month reporting period closed on May 31, 2018, Oracle's net profit was $ 3.41 billion, or 82 cents per share, compared to $ 3.23 billion, or 76 cents per US vendor's security, a year earlier.

Earnings per share excluding one-off factors rose to $ 0.99 from $ 0.89 in the fourth quarter of the previous year. Oracle's quarterly revenue rose 3% to $ 11.25 billion.

On average, Wall Street experts predicted an adjusted profit of Oracle at $ 0.94 per share. The consensus forecast of analysts for the company's revenue was $ 11.2 billion.

Oracle changed the structure of the publication of indicators of certain business areas in the past quarter, including revenue indicators in the field of "cloud" services in a broader division of "cloud" services and licensing support. 

The revenue of this unit, which is key for Oracle, in March-May increased by 8% to $ 6.77 billion. The revenue from the sale of licenses, both cloud and for local PCs, decreased by 5% to $ 2.48 billion.

Revenues from the sale of IT equipment, such as servers, storage and networking equipment, remained virtually unchanged over the year, remaining at $ 1.1 billion. The services brought the company $ 883 million in quarterly revenue, down 1% year-on-year.

According to the results of the first quarter of 2019 fiscal year, Oracle expects adjusted earnings in the range of 68 to 70 cents, while Wall Street predicted at 72 cents per share.

As a result of the whole 2018 fiscal year, the company's net profit fell by 59% to $ 3.8 billion, revenue increased by 6% to $ 39.8 billion. Oracle stocks since early 2018 have fallen in price by 2%.

source: bloomberg.com






Science & Technology

Nestle's Head: Veggie meat is new megatrend

Huawei may introduce Android replacement in August

Are US high-tech investors causing brain drain in Europe?

'Russia's Google' Yandex Was Hacked By Western Intelligence For Spying: Reuters

Reuters: Chinese hackers were stealing data from IT giants for years

China's first solar power molten salt plant sets record

WSJ announces imminent start of Boeing 737 MAX flight tests

Study: Machine learning is five times more harmful for the environment than a car

Would Singapore Be The First One To Bring Lab Grown Shrimps To The Global Market?

Apple Patents A ‘Foldable Screen’ For Creating Foldable iPhones

World Politics

World & Politics

France announces new tax for air fares

Europe Concerned Over Iran Move To Breach Uranium Enrichment Cap

Singapore To Build ‘$296 Million’ Smart Next-Gen Army Training Centre

No More Sales Of E-Cigarettes In San Francisco?

US ‘Hell-Bent On Hostile Acts’ Even After Trump-Kim Agreement, Says North Korea

Italy avoids EU sanctions for high national debt

Trump allocates 4.6 bln to help migrants

Iran Says Trump’s Belief That US-Iran War Would Be Short Is “An Illusion”