Oracle Corporation (NYSE:ORCL) misses estimates

Oracle Corporation (NYSE:ORCL) stock fell 1.41% (As on September 5, 11:32:02 AM UTC-4, Source: Google Finance) after the company missed both the topline and bottom line estimates for the first quarter of FY 23 but forecast solid near-term revenues. The cloud services sales rose 14% from last year to $8.42 billion. Cloud revenues were up an impressive 50% to $3.6 billion, including Cerner’s contribution of around $1.4 billion. Meanwhile, without Cerner, the total revenue grew 8% in constant currency driven by Oracle’s rapidly growing applications and infrastructure cloud businesses. These two cloud businesses now account for more than 30% of the total revenue. As the cloud businesses become a larger-and-larger percentage of the overall business, the company expects the constant currency organic revenue growth rate to hit double-digits with a corresponding increase in earnings per share. Cerner will also positively impact revenue and earnings per share growth in the coming quarters as the company fully integrate Cerner into Oracle and benefit from the resulting cost efficiencies. This is the first quarter we owned Cerner and they just delivered the best revenue quarter in their history. The company expects Cerner to do even better in the coming quarters as they develop an all-new suite of healthcare cloud services.

ORCL in the first quarter of FY 23 has reported the adjusted earnings per share of $1.03, missing the analysts’ estimates for the adjusted earnings per share of $1.07, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 18 percent to $11.45 billion in the first quarter of FY 23, missing the analysts’ estimates for revenue by 0.18%.

Oracle is forecasting constant currency revenue growth to be of between 21% and 23% for the current three month period.

Moreover, Multi-Cloud access to the Oracle Database and Oracle’s MySQL HeatWave database will make the world’s two most popular databases even more popular. In Q1 the company had expanded the relationship with Microsoft by providing all versions of the Oracle database directly to Microsoft Azure customers. Now all Microsoft customers can directly access the Oracle Exadata Cloud Service, the Oracle Autonomous Database and every other Oracle Database version directly from the Azure Cloud. Today we are also announcing that Amazon Web Services customers can directly access Oracle’s MySQL HeatWave database running in the Amazon Cloud. This enables AWS users to run transaction processing, real-time analytics, and machine learning on the single unified MySQL service.

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