Oracle Corporation (NYSE: ORCL) reported a weak third quarter of FY 18 performance leading to the stock fall of over 9.2% this morning (As of 10:37AM EDT on March 20th, 2018; Source: Yahoo finance). The weak guidance from the firm also led to this pressure. For the fourth quarter of 2018, ORCL expects earnings per share to be in the range of 92-95 cents per share, excluding certain items, and 1-3 percent revenue growth is expected in Oracle’s fiscal fourth quarter.
In the fiscal third quarter, ORCL has announced a data center infrastructure expansion and acquisitions of Aconex and Zenedge. Further, for the third quarter, the company had a $6.9 billion one-time charge because of tax reform, with a 16.1 percent tax rate, excluding certain items.
ORCL has reported the adjusted earnings per share of 83 cents, while adjusted revenue rose 6 percent to $9.77 billion in the third quarter of FY 18. Moreover, in the third quarter 2018, on-premises revenue grew by 4 percent to $6.42 billion grew, it makes up 66 percent of ORCL’s total revenue. ORCL’s new software license revenue fell 2 percent to $1.39 billion, and it represented 14 percent of all revenue for the company in the quarter. The analysts polled by FactSet had expected $1.42 billion in new software license revenue in the quarter, as per the StreetAccount.
As Oracle decreases its dependency on software sales for corporate data centers, the company has focused more on delivering cloud-based services to customers, and in the third quarter cloud software revenue grew 33 percent $1.15 billion was. Analysts polled by FactSet had expected $1.18 billion in revenue from cloud software in the quarter, as per the StreetAccount.
Cloud platform as a service and cloud infrastructure as a service revenue came in at $415 million, which is a 28 percent growth. Analysts polled by FactSet had expected $407 million in cloud infrastructure and platform revenue, according to StreetAccount. Market-leading cloud infrastructure provider Amazon Web Services had posted 45 percent growth to $5.11 billion in revenue, with, in its most recent quarter.