Oracle Corp (NYSE:ORCL) shares are trading higher Tuesday after the company announced better-than-expected financial results.
Oracle said fiscal fourth-quarter revenue increased 5% year-over-year to $11.8 billion, which beat the estimate of $11.67 billion, according to data from Benzinga Pro. The company reported quarterly adjusted earnings of $1.54 per share, which beat the estimate of $1.37 per share.
Oracle said its revenue growth is typically driven by its Fusion and NetSuite cloud applications, but in the fourth quarter, the company received a "major increase" in demand for its infrastructure cloud business.
"We believe that this revenue growth spike indicates that our infrastructure business has now entered a hyper-growth phase," said Safra Catz, CEO of Oracle.
Analyst Assessment:
- Stifel analyst Brad Reback maintained Oracle with a Hold rating and lowered the price target from $83 to $72.
- BMO Capital analyst Keith Bachman maintained Oracle with a Market Perform rating and lowered the price target from $92 to $86.
- JP Morgan analyst Mark Murphy maintained Oracle with an Overweight rating and lowered the price target from $100 to $82.
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ORCL Price Action: Oracle has traded between $106.34 and $63.76 over a 52-week period.
The stock was up 9.94% at $70.43 at time of publication.
Photo: courtesy of Oracle.
