Oracle Corporation (NYSE: ORCL) is trading in extended trading after reporting better-than-expected results for its second fiscal quarter.
Oracle’s guidance for the third quarter
Shares held steady despite the multinational’s guidance for profit falling slightly shy of Street estimates.
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For the current quarter, adjusted EPS ranged from $1.17 to $1.21 and analysts were expecting $1.23 per share. However, Daniel Morgan of the Synovus Foundation says Oracle Corp. is a good choice for stability in a challenging macroeconomic backdrop.
I expect Oracle to be well positioned in 2023. It trades at 15 times earnings, so its multiple is very low. They have a large install base, so their income is recurring, so they generate a lot of cash flow.
For the year, Oracle stock is down more than 5.0% on writedowns.
Oracle’s cloud revenue is growing rapidly
Earlier this year, Oracle spent about $28 billion on acquisitions Cerner Corporation – A health technology company. According to Morgan, that acquisition will also be significantly accretive to earnings.
According to the earnings report, cloud revenue was up 43% this quarter, and he expects that growth to continue. Talking to people in Yahoo FinanceMorgan said:
The transition to Oracle’s leading role in the cloud space remains the same. It has more than 400,000 customers and only 35% have switched to using their cloud service products. Hence, there is a tremendous opportunity to transform the existing site.
Wall Street also has a consensus “Overweight” rating on Oracle shares.
Oracle reports strong second-quarter results
- Earned $1.74 billion, up from $1.24 billion a year earlier
- Earnings per share also rose to 63 cents from 46 cents
- Adjusted EPS came in at $1.21 Press release
- Revenue grew 18% year-over-year to $12.28 billion
- The consensus was $1.17 in adjusted EPS on sales of $11.96 billion
Oracle also said it would have earned an additional 9 cents per share in the quarter without the currency impact. related to Stock market newspentagon provided A $9.0 billion cloud deal for four companies last week — Oracle being one of them.