Oracle Q4 Results Beat Street

(RTTNews) - Business software giant Oracle Corp. (ORCL), Wednesday reported a fourth-quarter profit and revenues that trumped Wall Street estimates, reflecting growth in cloud services revenues.

Redwood Shores, California-based Oracle reported fourth-quarter profit of $3.74 billion or $1.07 per share, up from last year's profit of $3.28 billion or $0.79 per share.

Adjusted earnings for the quarter increased to $1.16 per share from $0.95 per share last year. Analysts polled by Thomson Reuters expected earnings of $1.07 per share.

Revenues for the quarter were up 1 percent to $11.14 billion compared to last year's $11.01 billion. Analysts had a consensus revenue estimate of $10.95 billion.

Oracle's cloud services and license support revenues remained flat at $6.80 billion, while cloud license and On-Premise license revenues jumped 12 percent to $2.52 billion. Hardware revenues declined 11 percent to $994 million, while Services revenues slipped 7 percent to $823 million.

Our high-margin Fusion and NetSuite cloud applications businesses are growing rapidly, while we downsize our low-margin legacy hardware business. The net result of this shift away from commodity hardware to cloud applications was a Q4 non-GAAP operating margin of 47%, the highest we've seen in five years," said Oracle CEO Safra Catz.

"Our Fusion ERP and HCM cloud applications suite revenues grew 32% in FY19," said Oracle CEO, Mark Hurd. "Our NetSuite ERP cloud applications revenues also grew 32% this year. These strong results extend Oracle's already commanding lead in worldwide Cloud ERP. Our cloud applications businesses are growing faster than our competitors."

Monday's trading at $53.05, down $0.01 or 0.02%, on the Nasdaq. The stock further dropped $0.14 or 0.26% in the after-hours trade.

ORCL closed Wednesday's trading at $52.68, down $0.22 or 0.42% on the Nasdaq. The stock further gained $2.02 or 3.83% in the after-hours trade.