Oracle earnings exceed estimates, but stocks decline
The company expects fourth-quarter revenue to increase between 1% and 3% on a constant currency basis
Stocks impacted: Oracle Corp. (ORCL)
For the fiscal third quarter, Oracle reported net income of $5.02 billion, or $1.68 a share, compared with $2.57 billion, or 79 cents a share, in the year-ago period. Revenue rose to $10.09 billion from $9.8 billion in the year-ago quarter. Meanwhile, adjusted earnings were $1.16 a share, compared with 97 cents a share in the year-ago period. Revenue from Oracle's cloud services and licenses support unit rose 5% to $7.25 billion in the reported quarter. The database-software company said it expects fourth-quarter revenue to increase between 1% and 3% on a constant currency basis. Oracle expects $1.20 to $1.24 in adjusted earnings per share and 5% to 7% revenue growth in the fiscal fourth quarter. As such, the company’s stocks declined about 6% in extended trading as investors were disappointed by lower-than-expected quarterly earnings guidance while the quarterly dividend was raised to 32 cents per share from 24 cents per share.
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