Despite a terrific earnings beat, Oracle (ORCL) shares are trading down during after-market hours. Oracle shares are trading at $87.15 which is over 3% below the daily high at $90.30.
The multinational computer technology giant had numbers that met or exceeded guidance expectations. Oracle posted a revenue of $9.73 billion which is up 4% from the year earlier quarter, which is within the company’s guidance for growth of 3% to 5%.
Adjusted, non-GAAP profits were $1.03 a share, a much better figure than even the guidance range of 94 to 98 cents a share. But under GAAP, generally accepted accounting principles, the company earned 86 cents a share which is a bit below the guidance range of 91 to 95 cents a share.
“Q1 results were excellent,” Oracle CEO Safra Catz boasted in a statement. “Taken together Isaas [infrastructure-as-a-service] and SaaS [software-as-a-service] areOracle’s fastest growing and highest margin new businesses. As these two cloud businesses continue to grow they will help expand our overall profit margins.
During a post-earnings conference call with investors, Catz said she expects Oracle’s revenue growth in the November quarter to be within 3% and 5%. Catz is optimistic ass he sees an even better non-GAAP profits figure of between $1.09 to $1.13 a share. Analyst forecasts are expecting $1.08 per share.
Catz also added that she also expects growth of at least 5% in the November quarter figures for cloud service and license support.Despite the excellence in Oracle’s earnings, the shares are not trading any higher after reporting numbers.