Oracle stock down 3.9% after hours
Software and cloud services giant Oracle (ORCL) was down as much as 4% in extended trading on Thursday, even though the company reported better-than-expected numbers in the third quarter of fiscal 2019, which ended in February. Oracle easily exceeded Wall Street expectations on both earnings and revenues in the third quarter driven by growth momentum in its cloud services and license segment unit. However, Oracle’s revenues declined year-over-year mainly due to a strong dollar, which pulled down the stock in after-hours trading.
In fact, strong US currency will likely continue to dent the revenues in the fourth quarter by 3%. The company expects fourth-quarter of fiscal 2019 revenue to remain flat to down 2% YoY (in US dollars). Analysts are expecting fourth-quarter revenues of $11.06 billion, down ~1.8% YoY.
Oracle’s Q3 results
Oracle reported adjusted earnings of $0.87 per share in the third quarter. Earnings beat expectations of $0.84 per share by 3.6% and the year-ago number by 8%.
Revenues of $9.62 billion also beat the expectations of $9.59 billion in the quarter by 0.3%. Oracle has beaten analysts’ revenue expectations in 11 out the last 18 straight quarters. However, revenues declined slightly by 0.7% from the year-ago quarter due to currency headwinds.
Oracle stock closed down 0.02% to $53.05 but gained nearly 18% in the year-to-date period as of March 14. In the software industry, Oracle’s peers IBM (IBM) and Symantec (SYMC) gained 23.5% and 21.7%, respectively, while Microsoft (MSFT) and FireEye (FEYE) increased 13.3% and 3.9%, respectively, in the same period.
Cloud services company Oracle (ORCL) posted adjusted earnings of $0.87 per share in the third quarter of fiscal 2019.
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