Oracle Skids on Gaining Earnings, Though Sales Miss

Oracle Corporation (NASDAQ:ORCL) reported upbeat Q2 earnings, while sales missed expectations.

The company, out of Redwood Shores, Calif., reported Thursday total revenues were $9.6 billion, up 1% in U.S. dollar and in constant currency compared to Q2 last year. Cloud Services and License Support revenues were $6.8 billion, while Cloud License and On-Premise License revenues were $1.1 billion.

GAAP Operating Income was up 3% to $3.2 billion, and GAAP Operating Margin was 33%. Non-GAAP Operating Income was $4.0 billion, and non-GAAP Operating Margin was 42%. GAAP Net Income was $2.3 billion, and non-GAAP Net Income was $3.0 billion. GAAP Earnings Per Share was up 14% to $0.69, while non-GAAP Earnings Per Share was up 12% to $0.90.

Short-term deferred revenues were $8.1 billion. Operating Cash Flow was $13.8 billion during the trailing 12 months.

According to CEO Safra Catz, "We had another strong quarter in our Fusion and NetSuite cloud applications businesses with Fusion ERP revenues growing 37% and NetSuite ERP revenues growing 29%.

"This consistent rapid growth in the now multibillion dollar ERP segment of our cloud applications business has enabled Oracle to deliver a double-digit EPS growth rate year-after-year. I fully expect we will do that again this year."

Oracle also announced its Board of Directors also declared a quarterly cash dividend of $0.24 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on January 9, 2020, with a payment date of January 23, 2020.

Shares slid $1.48, or 2.6%, to $54.99.