Earnings Results: Oracle stock sinks as revenue outlook falls below Wall Street consensus

by | Sep 11, 2023 | Stock Market

Oracle Corp. shares dropped in extended trading Monday after the software company’s revenue forecast for the current quarter fell short of Wall Street expectations. Oracle
shares, which had been down about 5% after hours when its earnings call started, dropped more than 9% after Oracle Chief Executive Safra Catz forecast its outlook for the quarter.

On the conference call with analysts, Catz forecast second-quarter earnings of $1.30 to $1.34 a share on revenue growth of 5% to 7%, or $12.89 billion to $13.13 billion. Analysts surveyed by FactSet had estimated earnings of $1.34 a share on revenue of $13.28 billion. Catz added that if “currency exchange rates remain the same as they are now,” currency should have a 2% positive effect on total revenue and a 3 cent-a-share positive effect on earnings. Oracle reported fiscal first-quarter net income of $2.42 billion, or 86 cents a share, compared with $1.55 billion, or 56 cents a share, a year ago. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $1.19 a share, compared with $1.03 a share in the year-ago period. Revenue rose to $12.45 billion from $11.45 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of $1.15 a share on revenue of $12.57 billion. Oracle reported cloud services and license support revenue of $9.55 billion, while analysts, on average, had forecast $9.43 billion; and cloud license and on-premise license revenue of $809 …

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