Oracle first-quarter revenue misses, shares fall
Business software maker Oracle Corp (ORCL.N) on Monday missed revenue estimates for the first quarter, as sales in its cloud services and license support unit disappointed, sending its shares down 5 percent in extended trading.
Revenue from the unit, its biggest division by sales, rose 3.2 percent to $6.61 billion, missing the average analyst estimate of $6.71 billion, according to Thomson Reuters I/B/E/S.
In the preceding quarter, Oracle had created new revenue reporting structures, by merging its fast-growing cloud business with its legacy business of selling software licenses.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ORCL | ORACLE CORP. | 181.41 | -3.43 | -1.86% |
The company’s net income rose to $2.27 billion, or 57 cents per share, in the first quarter ended Aug. 31 from $2.14 billion, or 50 cents per share, a year earlier.
Excluding items, the company earned 71 cents per share.
Total revenue rose to $9.19 billion from $9.10 billion.
Analysts were expecting an adjusted profit of 69 cents per share on revenue of $9.28 billion.