How Is Oracle Corporation (NYSE:ORCL) Faring?

Posted by George Brook December 19, 2013 0 Comment 1044 views

Oracle Corporation (NYSE:ORCL) the S&P 500 index tracked hardware, applications, technology and platform services providing IT vendor announced results for its operations for the second quarter which ended on November 30. While the results for the past quarter were above analyst expectations, the firm surprised many by forecasting solid 3Q and provided estimates which were in line with what some of the aggressive analysts had hoped for from the world’s second largest software provider.

Coming Off Three Bad Quarters

Readers should note that this quarter results announcement from Oracle Corporation (NYSE:ORCL) had assumed important proportions since this $159 billion market capped firm had let down the investor community for the past there quarters with respect to its ability to generate revenue. Specifically weak was the company’s efforts in managing to eke out respectable margins out of its hardware business which it had acquired few years back by buying out troubled hardware maker Sun Microsystems.

3Q Outlook

Oracle Corporation (NYSE:ORCL) long serving Chief Financial Officer, Safra Catz gave out impressive outlook for their third quarter. She mentioned that they will grow their revenue this quarter between 3 to 7 percent and has pegged earnings per share to come in between $0.68 to $0.72.

2Q Performance

Oracle Corporation (NYSE:ORCL) also called out the stand out numbers from its second quarter’s performance. Its revenue went up by 2 percent while net income came down by 1 percent. Its earnings for the second quarter came in at $0.69 per share. But the most important aspect was buried under all these financial figures was the fact that its bread and butter business of new software licenses dipped by 1 percent this quarter.

Push to Gain Foot Hold in Cloud Space

Oracle Corporation (NYSE:ORCL) maverick CEO Larry Elision spoke on a conference call and highlighted  the efforts the company is making to increase its cloud offerings  by saying, “ That’s all my sales force think about every day, it is competing against every Workday prospect. We have another team of people that compete against We’re going to be cost competitive and price competitive at the infrastructure level while being highly differentiated at both the platform level and the application level”.

About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

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