Oracle (ORCL) outcomes Q3 2021

Safra Catz, Oracle CEO, delivers a keynote address during Oracle OpenWorld 2019 on September 17, 2019 in San Francisco, California. Oracle CEO Safra Catz started the second day of Oracle OpenWorld 2019 with a keynote address. The annual conference runs until September 19th.

Justin Sullivan | Getty Images

Oracle shares fell 3% in expanded trading on Wednesday after the enterprise software maker posted third-quarter earnings that exceeded analysts’ estimates and increased its quarterly dividend from 24 cents per share to 32 cents per share.

This is how the company did it:

  • Merits: According to Refinitiv, $ 1.16 per share, adjusted versus $ 1.11 per share as analysts expected.
  • Revenue: According to Refinitiv, $ 10.09 billion versus $ 10.07 billion as analysts expected.

Oracle’s revenue rose 3% on an annualized basis for the quarter ended February 28, according to a statement. Sales rose by almost 2% in the previous quarter.

Oracle’s top business, cloud services and license support, had revenue of $ 7.25 billion, up 5% year over year for the quarter and slightly less than the FactSet consensus estimate of $ 7.28 billion Dollar.

Oracle’s cloud licensing and on-premises licensing revenues were $ 1.28 billion, up 4% and more than the FactSet consensus of $ 1.21 billion. The company reported hardware sales of $ 820 million, down 4% and just below the FactSet consensus of $ 843 million.

During the quarter, Oracle introduced a portable, rugged server for running cloud workloads and announced the availability of version 21c of its database software as a cloud service.

Last week, Barclays analysts, led by Raimo Lenschow, raised their rating on Oracle stock to the equivalent of buy from the equivalent of hold, believing cloud revenue growth would accelerate. “We anticipate stocks will re-evaluate, especially as investor appetites for value names and cash flow growth stories continue to improve in a higher return environment due to the pandemic,” they write.

In terms of projections, analysts surveyed by Refinitiv expected adjusted earnings per share of $ 1.28 and revenue of $ 10.84 billion for the fourth quarter of the fiscal year, representing a growth of about 4%.

Oracle stock is up about 12% since the beginning of 2021, while the S&P 500 index is up 4% over the same period. The company last increased its dividend in 2019 when it rose 26% compared to the 33% increase announced on Wednesday.

Executives will discuss the results with analysts and issue guidelines for a conference call starting at 5:00 p.m. Eastern time.

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