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Post Earnings Coverage: Oracle Rides on Cloud

[ACCESSWIRE]

LONDON, UK / ACCESSWIRE / June 17, 2016 / ActiveWallSt.com announces its post-earnings coverage on Oracle Corp. (NYSE: ORCL). The company reported fourth quarter 2016 financial results on Thursday, June 16, 2016. The business software maker's earnings met analysts' expectations. The company's revenue was higher than expected as sales in its cloud business surged. Oracle also expanded its margins during the reported quarter. Register with us now for your free membership and see our complete earnings coverage on this equity at:

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Earnings Breakdown

For the quarter ended on May 31, 2016, Oracle reported net income of $2.81 billion, or $0.66 per share, up from $2.76 billion, or $0.62 per share, in the year ago period. Adjusted for certain items, earnings were $0.81 per share, marginally lower than analyst's estimates of $0.82 per share. The enterprise technology company reported revenue for Q4 FY16 at $10.59 billion, as compared to revenue of $10.71 billion in the year ago period, beating analysts' consensus estimate of $10.47 billion.

Oracle, once considered a bellwether of the business technology sector, is transitioning towards the cloud-computing model, where instead of selling installed software, the company provides services remotely via data centres. With this move it now competes in the Cloud space against Microsoft Corp. (NASDAQ: MSFT), SAP SE, International Business Machines Corp. (NYSE: IBM), Salesforce.com, Inc. (NYSE: CRM) and Workday Inc. (NYSE: WDAY).

For Q4 FY16, Oracle reported that revenue for its Cloud software as a service (SaaS) and platform as a service (PaaS) was $690 million up 68% in constant currency basis. For Q4 FY16, Oracle reported total Cloud revenues, also comprising infrastructure as a service (IaaS), at $859 million, up 51% on constant currency basis.

Oracle's Chairman, Larry Ellison, outlined on Thursday the company's goal to become the first cloud company to reach $10 billion in SaaS and PaaS revenue. Oracle has acquired cloud companies Textura and Opower in April and May 2016, respectively, adding to its burgeoning cloud portfolio.

Oracle added more than 1,600 new SaaS customers and more than 2,000 new PaaS customers during Q4 FY16. The tech company forecasted that revenue from the two divisions will surge between 75% and 80% during Q1 FY17. Revenue from Oracle's on-premise software business remained flat on y-o-y basis at $8.4 billion, during Q4 FY16; this, however, still makes up three quarters of Oracle's total revenues.

Dividend

Oracle announced a dividend pay-out of $0.15 per share in the earning release. The dividend would be payable on July 27, 2016 to shareholders on record as of the close of business on July 06, 2016.

Stock Performance

Pre-earnings and at the close of yesterday's session, Oracle was up 0.52%, finishing at $38.64 after reaching an intraday high of $38.80. Following the release of its financial results, Oracle shares jumped as much as 3.8% to $40.10 in aftermarket trading session. Shares of the California-based company have declined 2.42% in the past one month, however the stock had risen 6.61% since the beginning of the year.

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SOURCE: Active Wall Street