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Oracle Rallies 13% Premarket After Better-Than-Expected Earnings

Analyst Team trader
Updated 14 Jun 2022

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Key points:

  • Oracle stock rallies premarket
  • Earnings and revenue beat expectations
  • Oracle declared a quarterly dividend of $0.32 per share

Oracle (NYSE: ORCL) announced its fourth quarter and fiscal full-year earnings after the close Monday, with the results beating analysts' forecasts.

Shares of the database software company surged 13% premarket.

Revenue was able to beat analysts' forecasts, coming in at $11.84 billion compared to the $11.62 billion predicted. The 5% increase in revenue compared to the prior year was driven by growth in its cloud infrastructure business, with cloud revenue for the fourth quarter of $2.9 billion, up 19% year-over-year.

Meanwhile, earnings per share came in at $1.54, compared to the $1.37 expected.

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Furthermore, full-year total revenue increased 5% to $42.4 billion, and full-year earnings per share came in at $4.90.

“We continued to improve our top line results again this quarter with total revenue growing 10% in constant currency,” said Oracle CEO Safra Catz. “These consistent increases in our quarterly revenue growth rate typically have been driven by our market leading Fusion and NetSuite cloud applications. But this Q4, we also experienced a major increase in demand in our infrastructure cloud business—which grew 39% in constant currency. We believe that this revenue growth spike indicates that our infrastructure business has now entered a hyper-growth phase.”

In addition, the board declared a quarterly dividend of $0.32 per share which will be paid on the 26th of July.

Looking ahead, Oracle sees first-quarter earnings per share of between $1.04 to $1.08, with revenue expected to rise between 20% to 22%. Cloud revenue for Q1, excluding Cerner, is expected to rise from 25% to 28%.

The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.