Oracle reported revenue that met expectations on Monday, while earnings and quarterly guidance came in below analysts’ estimates.
Revenue climbed 18% in the quarter from a year earlier, thanks to a contribution from recently acquired software maker Cerner.
Here’s how the company did:
- Earnings: $1.03 per share, adjusted, vs. $1.07 per share as expected by analysts, according to Refinitiv.
- Revenue: $11.45 billion, vs. $11.45 billion as expected by analysts, according to Refinitiv.
Oracle received a $1.4 billion contribution from Cerner, after the $28 billion acquisition closed during the quarter.
Net income declined to $1.55 billion from $2.46 billion in the year-ago quarter. Oracle said it would have seen 8 cents more adjusted earnings per share if it were not for unfavorable foreign-exchange rates.
Oracle’s cloud services and license support category generated $8.42 billion in revenue, up 14% and above the StreetAccount consensus of $8.27 billion.
Oracle’s applications and infrastructure cloud businesses now represent over 30% of total revenue, CEO Safra Catz said in a statement. Revenue from cloud infrastructure totaled $900 million in the quarter, up 52%.
With respect to guidance, Oracle said it expects $1.16 to $1.20 in adjusted earnings per share and 15% to 17% revenue growth in the fiscal second quarter. Analysts polled by Refinitiv had been looking for $1.27 per share and $12.17 billion in revenue, implying almost 18% growth.
Catz said she expects exchange rates to have a 5% to 6% negative impact on revenue and a hit on earnings per share of up to 7 cents per share for the fiscal second quarter.
Excluding the after-hours move, Oracle shares are down almost 12% so far in 2022, while the S&P 500 is down around 14% over the same time period.
Oracle executives will discuss the results with analysts and issue guidance on a conference call starting at 5 p.m. ET.
This story is developing. Please check back for updates.