Oracle Q1 Profit Beat Street View

(RTTNews) - Business software giant Oracle Corp. (ORCL), Monday reported a first-quarter profit that trumped Wall Street estimates, driven by continued demand for cloud services and other software. However, revenues for the quarter fell shy of analysts expectations.

Redwood Shores, California-based Oracle reported first-quarter profit of $2.46 billion or $0.86 per share, up from $2.25 billion or $0.72 per share last year.

On an adjusted basis, earnings for the quarter were $2.94 billion or $1.03 per share for the period, up from $2.88 billion or $0.93 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.97 per share. Analysts' estimates typically exclude special items.

Revenues for the quarter rose 4% to $9.73 billion from $9.37 billion last year. Analysts had a consensus revenue estimate of $9.77 billion.

Cloud services and license support revenues were up 6% to $7.37 billion, while Cloud license and on-premise license revenues slipped 8% to $813 million. Hardware revenues decreased 6% to $763 million, while services rose 8% to $781 million.

"Q1 results were excellent as constant currency revenue beat guidance by $100 million with all revenue segments exceeding forecast, and Non-GAAP earnings per share beating guidance by $0.08," said Oracle CEO, Safra Catz. "Oracle's two new cloud businesses, IaaS and SaaS, are now over 25% of our total revenue with an annual run rate of $10 billion.|

Further, board declared a quarterly dividend of $0.32 per share, payable to stockholders as of October 12, 2021 with a payment date of October 26, 2021.

ORCL closed Monday's trading at $88.89, down $0.79 or 0.88%, on the Nasdaq. The stock further slipped $2.92 or 3.28% in the after-hours trading.