Earnings Results: Oracle misses on earnings results and forecast as strong dollar takes a toll

by | Sep 12, 2022 | Stock Market

Oracle Corp. reported lower earnings than expected Monday and executives’ profit forecast also came in lower than analysts were projecting, as a strengthening dollar took its toll. Oracle
reported fiscal first-quarter net income of $1.5 billion, or 56 cents a share, on revenue of $11.45 billion, up from $9.73 billion a year ago. After adjusting for stock-based compensation, restructuring fees and other effects, the software giant reported earnings of $1.03 a share, the same per-share figure reported in the fiscal first quarter a year ago. Analysts on average had expected adjusted earnings of $1.07 a share on revenue of $11.33 billion, according to FactSet.

Chief Executive Safra Catz said in a conference call Monday that the earnings miss was a result of a strengthening dollar during the quarter. She said that the currency fluctuations cost Oracle 8 cents a share in the quarter, while she was expecting 5 cents when she made the forecast three months ago. For the second quarter, Catz guided for adjusted earnings of $1.16 to $1.20 a share on sales of about $11.9 billion to roughly $12.1 billion, while again noting that a strong dollar will be an issue — she expects $1.20 to $1.27 a share in constant currency. Analysts on average were expecting second-quarter adjusted earnings of $1.27 a share on revenue of about $12.1 billion, according to FactSet. Shares were up about 1% in after-hours trading Monday afternoon following the forecast, wh …

Article Attribution | Read More at Article Source

Share This