Stock in Oracle Corp (NYSE: ORCL) rallied just over 14% in Friday premarket trading, soaring past all-time highs as the company posts better-than-expected Q2 earnings, with the cloud services industry continuing to be a prized sector in technological innovation. Oracle has grown nearly 120% over the last 5 years, cemented by today’s gains reflective of a positive quarter.
The cloud-focused software group released its Q2 earnings postmarket Thursday, sending the stock soaring in today’s premarket. Set to open with gains of 14%, Oracle posted earnings that closely beat analyst estimates – reassuring for those looking towards the cloud services industry.
The company posted an EPS of $1.21 – up 14% and ahead of analyst estimates by $0.10. Revenue also beat guidance by $200M, with total quarterly revenue at $10.4B, outlining 6% year-on-year growth. The positive results have been driven by a 22% growth in business cloud applications, an area that contributes to roughly $11B in annual revenue and boasts profit margins of 84%.
With bookings also increasing 11% from last year, Oracle has also forecast promising current quarter figures, with revenue estimates of between $10.7B and $10.9B. This being said, Oracle isn’t alone in its quest to dominate cloud computing. In fact, the company lags a little behind the growth seen in companies like Salesforce.
Oracle is trading with a premarket gain of 13.6%, creating new all-time highs at a price of $100.87.
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.