Oracle share price up 7% after Q4 results revenue beat
The software company's stock is soaring after a positive Q4 earnings report.
Oracle share price jumped after a better-than-expected Q4 2019 earnings report. The software company surpassed earnings and revenue expectations.
Oracle earnings:key figures
| Earnings per share | $1.16 |
| Revenue | $11.14 billion |
| Cloud Services and Licence Support | $6.80 billion |
Oracle Q4 results rise on cloud revenue
Oracle’s Q4 earnings per share were $1.16, rising above expectations of $1.07. Oracle’s Q4 revenue was $11.14 billion, exceeding the expected $10.93 billion. The software company’s cloud services and licence support division revenue was $6.80 billion. That figure surpassed financial experts’ projections of $6.76 billion.
Chief executive officer (CEO), Safra Catz, spoke about how cloud licence sales helped Oracle’s Q4 revenue.
‘Cloud licence and on-premise licence revenues were $2.5 billion, up 15%. In particular, technology licence growth was up 19%, making it abundantly clear that customers are investing in the Oracle platform,’ said Catz.
Catz also spoke about how the corporation’s transition from hardware to cloud applications helped to improve Oracle’s Q4 results.
‘Our high-margin Fusion and NetSuite cloud applications businesses are growing rapidly, while we downsize our low-margin legacy hardware business. The net result of this shift away from commodity hardware to cloud applications was a Q4 non-GAAP (general accepted accounting principle) operating margin of 47%, the highest we’ve seen in five years,’ said Catz.
How did Oracle’s Q4 profits compare to other software companies?
Compared to Salesforce’s Q1 2020 earnings, Oracle’s Q4 2019 results were also positive. Both Salesforce and Oracle’s earnings beat expectations.
Oracle’s Q4 earnings report was better than SAP’s Q1 earnings report. SAP had a mixed report, with high revenue and worse-than-expected earnings. Oracle’s earnings and revenue exceeded expectations.
What’s Oracle’s 2020 outlook?
Oracle’s Q1 2020 earnings per share are projected to be in the range of $0.80-$0.82. For fiscal year 2020, Catz predicts that Oracle’s earnings per share and revenue will have double-digit growth.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
