ORCL Stock: Oracle Earnings Edge Above Estimates

Oracle (ORCL) reported quarterly earnings late Thursday that barely topped estimates while its sales slightly missed. ORCL stock dropped on the news.

X

The database software giant reported adjusted earnings of $1.22 a share on revenue of $12.4 billion in its fiscal third quarter ended Feb. 28. Analysts expected Oracle to earn an adjusted $1.20 a share on revenue of $12.43 billion, according to FactSet.

ORCL stock dropped 3.9% to 83.50 in after-hours trading on the stock market today.

Total revenue jumped 18% year over year, or 21% in constant currency. Total cloud revenue came in at $4.1 billion, up 45%. Oracle’s cloud business now exceeds $16 billion in annualized revenue.

ORCL Stock Forming Base

Also, ORCL stock has formed a cup-with-handle base with a buy point of 91.32. ORCL stock is trading right at its 50-day moving average.

Health care company Cerner, which Oracle acquired in June, contributed $1.5 billion to total revenues, the company said.

“Since we acquired Cerner, that business has increased its health-care contract base by approximately $5 billion,” Oracle Chairman and Chief Technology Officer Larry Ellison said in a news release. “We have signed a diverse set of new and expanding domestic and international customers.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

YOU MAY ALSO LIKE:

Tech Industry Layoffs Show No Signs Of Abating As Businesses Undo Overhiring

Why Earnings Growth Is Crucial Element Of Winning Stocks; ServiceNow Stock Showed How

Before Top Stocks Usher The Golden Sell Rule, Here’s When To Cut Losses Faster

IBD 50 Growth Stocks To Watch

Time To Tweak Your Investments To An Inflationary Environment?