Oracle shares jump as much as 9 percent after earnings top estimates

Jun 21, 2017 | Bad Credit Loans, Bank Lending, Business Lending, Business Loans, Capital, Economics, Finance, Non-Bank Loans, Working Capital

Oracle shares jumped as much as 9 percent in extended trading on Wednesday after the company beat earnings estimates for the fiscal fourth quarter.

  • EPS: 89 cents vs. 78 cents as expected by analysts, according to FactSet. This was excluding certain items.
  • Revenue: $10.9 billion vs. $10.5 billion expected by analysts.

Revenue for the quarter rose 3 percent. Subscription software reached more than $1 billion for the first time.

Oracle has been pushing hard in public cloud, aiming to compete with market leader Amazon Web Services (AWS). In May Oracle said AT&T would move thousands of databases to its cloud.

However, the second-generation cloud infrastructure that Oracle announced in September is “currently a bare-bones ‘minimum viable product,'” Gartner said in a major industry report last week. This marked the first year Oracle was included in the report.

In the fourth quarter, Oracle produced $208 million in cloud infrastructure as a service (IaaS) revenue, up 23 percent from the prior year. (Last quarter CEO Safra Catz predicted IaaS revenue would increase by 25 percent to 29 percent.)

Revenue at AWS jumped 42 percent to $3.7 billion in revenue in the first quarter.