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Dec. 11, 2020, 8:27 a.m. EST

Oracle’s stock shakes off decline after upbeat forecast

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By Jeremy C. Owens

Oracle Corp. shares declined in after-hours trading Thursday despite better-than-expected quarterly earnings results but then rebounded after the company’s forecast also surpassed expectations.

Oracle /zigman2/quotes/202180826/composite ORCL +0.93% on Thursday afternoon reported earnings for its second fiscal quarter of $2.44 billion, or 80 cents a share, on revenue of $9.8 billion, up from $9.62 billion a year before. After adjusting for stock-based compensation and other effects, the software company reported earnings of $1.06 a share, up from 90 cents a share a year earlier. Analysts on average expected adjusted earnings of $1 a share on sales of $9.77 billion, according to FactSet.

“Our highly profitable multibillion-dollar Fusion and NetSuite Cloud ERP applications businesses grew revenue 33% and 21%, respectively, in Q2,” Oracle Chief Executive Safra Catz said in Thursday’s announcement. “These two strategic cloud-applications businesses are major contributors to Oracle’s increased operating earnings and consistent earnings-per-share growth.”

Oracle’s stock sank more than 1% in after-hours trading immediately following the release of the results, after declining 0.5% to $59.43 in the regular session, but then moved back to flat after Catz provided her forecast in Thursday afternoon’s conference call. Catz projected that Oracle would collect third-quarter adjusted earnings of $1.09 to $1.13 a share and that revenue would grow by 2% to 4%. Analysts had been projecting adjusted earnings of $1.04 a share and year-over-year revenue growth of less than 1.4%.

Shares reached record highs in October but took a dive after another software giant , SAP SE /zigman2/quotes/207905606/composite SAP -2.27% , issued a warning about its sales and profit; Oracle’s stock had recovered to roughly its levels before SAP’s warning prior to Thursday afternoon’s report.

Overall, Oracle stock has risen 12.3% in 2020, as the S&P index /zigman2/quotes/210599714/realtime SPX -2.45% has gained 13.7%.

/zigman2/quotes/202180826/composite
US : U.S.: NYSE
$ 65.30
+0.60 +0.93%
Volume: 15.36M
Feb. 25, 2021 4:03p
P/E Ratio
19.80
Dividend Yield
1.47%
Market Cap
$190.48 billion
Rev. per Employee
$289,393
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/zigman2/quotes/207905606/composite
US : U.S.: NYSE
$ 123.69
-2.87 -2.27%
Volume: 735,346
Feb. 25, 2021 4:00p
P/E Ratio
24.59
Dividend Yield
1.01%
Market Cap
$147.60 billion
Rev. per Employee
N/A
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/zigman2/quotes/210599714/realtime
US : S&P US
3,829.34
-96.09 -2.45%
Volume: 2.92B
Feb. 25, 2021 5:19p
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