Oracle Meets Profit Expectations In Its FQ3, Misses With Revenue Of $9.3B Due To Forex Headwinds

Next Story

Project Mosul Aims To Resurrect The Artifacts Destroyed By ISIS

Following the bell, Oracle announced the results of its fiscal third quarter, including revenue of $9.3 billion and earnings per share of $0.68. Investors expected the software company to earn $0.68 per share on revenue of $9.46 billion.

The company stressed the impact that a quickly changing currency market had on its earnings: Using stable currency exchange rates, Oracle noted that would have posted a 6 percent increase in revenue, and a 9 percent increase in profit. Oracle is not alone among large companies blaming forex for short term-EPS and revenue tightening.

The company’s $9.3 billion is flat from its year-ago period. Down just over a percent in regular trading, Oracle is down a fraction following its mixed earnings.

The street expects the company to earn $2.95 per share on full fiscal-year revenue of $39.09 billion. Investors also expect Oracle to ring up $0.94 in fourth quarter profit on revenue of $11.43 billion.

Key to Oracle are its cloud incomes. In its preceding quarter, the second of the company’s fiscal 2015, Oracle reported that its “Cloud software-as-a-service (SaaS), platform-as-a-service (PaaS) and infrastructure-as-a-service (IaaS) revenue was up 45% to $516 million.” In the current quarter, Oracle reported a slower growth rate for the category, 29 percent on a year-over-year basis, but more total revenue: $527 million.

Oracle has $13.7 billion in cash, and just over $30 billion in marketable securities. The company, therefore, with its fresh co-CEOs, is very well-capitalized.

Investors seem content with Oracle’s quarter, even if its raw figures on the top line were below expectations. Given that, the firm would have had a strong quarter, beating expectations on both profit and revenue. Of course, analysts likely anticipated at least part of the forex issues Oracle encountered, but the delta remains interesting.