Oracle Quarterly Earnings Beat Estimates, Revenue A Slight Miss

By BRIAN DEAGON

Oracle reported quarterly results late Monday that slightly missed revenue estimates and soundly beat on earnings. Oracle stock fell.

The database software company reported adjusted earnings of $1.03 a share on revenue of $9.73 billion. Analysts expected Oracle to report earnings of 97 cents on revenue of $9.75 billion, according to FactSet. The results were for its fiscal first quarter ended Aug. 31. Revenue climbed 4% from the year-ago period.

Oracle stock fell 3%, near 86.10, during after-hours trading on the stock market today

Cloud services and license support revenues were up 6% to $7.4 billion, in line with expectations. Cloud license and on-premise license revenues were down 8% to $813 million, below estimates of $861 million.

Over the past several years, Oracle has transitioned from an antiquated business of on-premises database software licensing and maintenance to a subscription-based software model that taps the benefits of cloud computing.

Oracle stock has an IBD Composite Rating of 92 and ranks No. 2 in the database software group behind Dropbox. Oracle's relative strength line is still near highs amid sideways price action since July.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.


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