Oracle Corp Up 6.63% in After Hours Trading Following 2nd Quarter Results

GuruFocus.com
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- By Alberto Abaterusso

Oracle Corp. (ORCL) jumped 6.63% in after-hours trading yesterday Dec. 14 on second quarter of fiscal 2018 results.

The Redwood Shores posted a non-GAAP EPS of 70 cents, which was a 14% increase from the comparable quarter of fiscal 2017, and beat consensus by 2 cents.


The beat produced a 2.90% positive surprise.

Revenue came in at $9.621 billion, a 6.5% increase year over year. Oracle beat expectations on revenue by $5 million.

Let"s have a quick look at revenue by category:

Cloud Software as a Service revenue came in at $1.1 billion, a 55% increase year over year. Infrastructure as a Service plus Cloud Platform as a Service revenue increased by 21% on a year over year basis to $396 million. Total Cloud revenue came in at $1.5 billion in the quarter. Total Cloud revenue increased by 44% from the same quarter of fiscal 2017.

The below chart gives a picture of Oracle"s quarterly revenue over the last six quarters:

The following are the other most important figures from the second quarter of fiscal 2018:

Oracle reported a non-GAAP operating margin of 44% versus a margin of 42% reported by the company in the prior-year quarter.

Short-term deferred revenue was $8.1 billion, a 9% increase year over year. The operating cash flow computed over the last 12 months was $14.6 billion, approximately 2% higher than one year ago.

The company closed the quarter with approximately $71.58 billion in cash on hand and securities.

During the second quarter of fiscal 2018, the board of directors of the Redwood Shores authorized a $12 billion increase in the share repurchase program.

The board of directors also authorized Oracle to pay a 19-cent quarterly cash dividend per ordinary share of the company on Jan. 24 to the shareholders of record on Jan. 10.

Oracle Corp. is trading at $50.19 per share on the New York Stock Exchange with a market capitalization of $209.467 billion.

For the 52-weeks through Dec. 14, Oracle gained 22.8% on the stock market and outperformed the S&P 500 index by about 5.6%:

Source: Yahoo Finance

The stock has a 52-week range of $38.30 to $53.14.

The forward P/E ratio is 15.83. For full fiscal 2018, analysts estimate an EPS of $2.94.

The average target price is $56.30. Oracle has recommendation rating of 2 out of 5.

Disclosure: I have no positions in Oracle Corp.

This article first appeared on GuruFocus.


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