Oracle Quarterly Earnings Beat Guidance | Glenrock Gazette

Oracle Quarterly Earnings Beat Guidance

Oracle (ORCL) posted double-digit growth in fiscal fourth-quarter adjusted earnings after markets closed on Wednesday beating market expectations, as a shift from commodity hardware to cloud applications propelled operating margin to the highest level in five years.

Group sales rose to $11.14 billion during the three months that ended May 31, from $11.01 billion a year ago, as the Fusion ERP and NetSuite ERP cloud applications reported strong growth, the Redwood Shores, California-headquartered group said in its earnings statement late on Wednesday.

Quarterly sales were also higher than the $10.9 billion average analyst estimate compiled by Capital IQ.

Oracle’s proforma earnings per share climbed by 23% to $1.16 in the quarter from $0.95 a year ago, surpassing the $1.08 Street’s forecast, following strong growth in the “high-margin” Fusion and NetSuite cloud applications businesses.

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Citing industry analyst IDC’s latest annual market share results, the company said that Oracle gained the most market share globally out of all Enterprise Applications SaaS vendors three years running in calendar years 2016, 2017, and 2018.

“We added over five thousand new Autonomous Database trials in Q4,” Oracle Chairman Larry Ellison said in the statement. “Our new Gen2 Cloud Infrastructure offers a compelling array of technology features, including our self-driving database that automatically encrypts all data, backs itself up, tunes itself, upgrades itself, and patches itself. No other cloud infrastructure provides anything close to these autonomous features.”

Looking ahead, Oracle expects first-quarter revenue in fiscal 2020 to grow by 1% to 3% at constant currency and between flat and 2% higher in reported terms. Adjusted earnings per share are seen at $0.81 to $0.83 on a constant exchange rate basis. In US dollar terms, proforma earnings per share are expected to come in the range of $0.80 and $0.82.