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Oracle Stock Is Flat After an On-Target Earnings ReportOracle Stock Is Flat After an On-Target Earnings ReportSavitz, Eric J.Barron's (Online); New York Oracle posted a profit on Thursday that was a bit better than expected and revenue that matched expectations for its fiscal second quarter . For the quarter ended Nov. 30, the enterprise-software company posted revenue of $9.8 billion, up 2% from a year earlier, and right in line with Wall Street analyst consensus estimates. Non-GAAP profit was $1.06 a share, ahead of the Street at $1 even. Oracle (ticker: ORCL) said cloud services and license support were $7.1 billion, up 4%, accounting for 72% of revenue. Cloud license and on-premise license revenue was $1.1 billion, down 3%. Hardware revenue was $844 million, down 7%, while services revenue was $752 million, also down 7%. Oracle CEO Safra Catz noted in a statement that the company's "highly profitable multibillion-dollar Fusion and NetSuite Cloud ERP applications businesses grew revenue 33% and 21%" in the quarter. "These two strategic cloud applications businesses are major contributors to Oracle's increased operating earnings and consistent earnings per share growth," Catz said. "We expect this rapid market share and revenue growth trend to continue." Chairman and Chief Technology Officer Larry Ellison said the company's "Gen2" cloud infrastructure is adding customers and increasing revenue at a rate above 100% a year. "Demand for our Gen2 Cloud Infrastructure is exceeding our plan and we are opening new data centers as fast as we can," he said. "Oracle opened 13 additional regional data centers in 2020 to bring our total to 29 regional data centers worldwide, more than [Amazon Web Services]." On a conference call with analysts, Catz said Oracle expects revenue in the February quarter to be up between 2% and 4%, or 1% to 3% in constant currency. She said the company expects non-GAAP profits of between $1.09 and $1.13 a share, or between $1.06 and $1.10 in constant currency. Street estimates had called for 1.6% revenue growth, and non-GAAP profits of $1.04 a share. In after-hours trading, Oracle shares were up two cents to $59.45. The stock fell 0.4% in regular trading, as the Dow Jones Industrial Average lost 0.2%. |
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