Oracle earnings show a company between the present & future
Oracle (ORCL) reported third quarter earnings that missed on the top and bottom lines. Adjusted earnings per share (EPS) was $1.47 for the quarter, lower than estimates of $1.49, while adjusted revenue was $14.13 billion, below the $14.39 billion Wall Street expected. Third quarter cloud infrastructure revenue was $2.7 billion, just short of estimates of $2.71 billion. Despite the earnings miss, the company announced an unexpected increase to its dividend as executives touted artificial intelligence (AI) sales wins, painting a mixed picture of the company. D.A. Davidson managing director, Gil Luria, joins Market Domination Overtime with Josh Lipton and Julie Hyman to share his reaction to Oracle's earning print. Luria says the results reflect "a balance between the business Oracle is currently in, which just missed the low end of guidance, and the business they are moving into." He notes that Oracle is "guiding very aggressively into the next fiscal year," with the company issuing guidance of 15% growth, higher than the single-digit outlook analysts expected. The analyst adds that the stronger-than-expected guidance is "good news," but the goal is "ambitious," especially given the company was unable to meet the low end of its guidance range for the third quarter. Luria says the question is, "How realistic is it that they can get to 15% revenue growth, and at what margins is that going to come in?" To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. This post was written by Naomi Buchanan.
