Oracle Corporation (ORCL) posted better-than-expected performance and outlook for its second fiscal quarter on Thursday, and in the aftermath of Friday’s announcement that it plans to move its headquarters from Redwood City in the Silicon Valley of California to Austin, Texas.
Gold bugs are shouting from the rooftops in excitement, but that doesn’t mean you rush out and just buy any gold stock…That’s why we laid out The 2021 Ultimate Gold Portfolio – to dissect the treasure from the trash.
The company stated that it had agreed to move to provide more job flexibility, noting that its workers would have the option of moving or working full-time or part-time telecommuting jobs.
On the performance side, for its second fiscal quarter, the U.S. enterprise management software company (ERP), founded by Larry Ellison in 1977, announced net income of $2.44 billion (80 cents per share) on revenue of $9.8 billion, up 1.8 percent from $9.62 billion in the same time in 2019. Earnings per share (EPS) for non-recurring adjusted goods are $1.06 per share, which was up 18 percent compared to $0.9 a year ago.
These numbers are largely higher than those predicted by the markets. The analyst consensus set by Factset was $1 per share for EPS and $9.77 billion for revenue.
Analysts appreciated the forecast made during a conference call late Thursday by Oracle’s chief executive, Safra Catz. ORCL anticipated EPS of $1.09 to $1.13 per share on adjustment basis for the third fiscal quarter, with revenue increasing by 2 percent to 4 percent from Q3 2019. These estimates surpassed market expectations of $1.04 per share of after-adjustment EPS and less than 1.4 percent revenue increase.
Safra Catz said the fiscal results for the second quarter were driven by strong revenue growth for the two cloud applications of the company, Fusion and NetSuite, which jumped 33% and 21% year-on-year, respectively. “These two strategic cloud applications have contributed significantly to the increase in operating income and earnings per share,” Catz said.
We expect this dynamic of rapid growth in revenue and market share to continue, as both Gartner and IDC have placed Oracle’s ERP suite in the cloud at number one,’ added the CEO of Oracle.
Oracle Corporation (ORCL) shares on Wall Street replied by climbing 1.90 percent on Friday to $60.61, again reaching near to its record highs. The stock, which has increased by more than 14% since the beginning of the year, hit an all-time high of $61.46 in October, before dropping after a profit warning provided by another industry giant, the German SAP company.