Enterprise software firm Oracle Corp., hurt by competition in the cloud computing space, fell short of Wall Street’s expectations for first-quarter revenue on Monday.
Shares of the Austin, Texas-based company narrowed losses and fell 1.4 percent in extended trading after the company forecast second-quarter adjusted earnings per share above expectations.
According to IBES data from Refinitiv, the company expects adjusted earnings per share between $1.09 and $1.13, well above analysts’ average estimates of $1.08.
Analysts say Oracle, whose shares have risen nearly 40 percent this year, is well positioned to benefit from cloud computing, but rivals including Microsoft Corp’s Azure, Amazon.com Inc.’s Amazon Web Services, Salesforce It is a crowded place. Com and IBM Corp. will keep the heat on the company.
“The expectation is that revenue forecasts will continue to be high,” said Jack Andrews, analyst at Needham & Co.
To gain a foothold in the cloud computing space, Oracle, which counts Zoom Video Communications as one of its customers, is increasing investment to set up more data centers that can be rented out to customers. Because they expand and transform operations in the cloud. .
Oracle said its two new cloud businesses, software-as-a-service and infrastructure-as-a-service, account for 25 percent of the company’s total revenue, with an annual run rate of $10 billion.
Third Bridge analyst Scott Kessler said, “While it is unclear how this contribution compares with expectations, it is fair to say that this is an additional data point that shows that Oracle is behind some competitors in a significant way.” is behind.”
Total revenue rose 4 percent to $9.73 billion for the quarter ended Aug. 31. Analysts were expecting revenue of $9.77 billion.
Excluding commodities, Oracle earned $1.03 per share, which topped analysts’ expectations of 97 cents per share.
This News Originally From – The Epoch Times