How Is Oracle Corporation (NYSE:ORCL) Faring?
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.
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.
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 Salesforce.com. 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”.