Post-Earnings Coverage - Oracle

LONDON, September 25, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings review on Oracle Corp. (NYSE: ORCL). The company reported its financial results for Q1 FY15 on Thursday, September 18, 2014. During Q1 FY15, Oracle Corp.'s GAAP and non-GAAP EPS increased 2% and 4%, respectively, from the preceding year, and its total revenues grew 3% Y-o-Y. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview  

During Q1 FY15, Oracle Corp.'s total revenues grew to $8,596 million, from $8,372 million in the preceding year quarter. The reported quarter revenues fell short of Bloomberg analysts' estimates of $8,780 million. The company's total Software and Cloud revenue during Q1 FY15 increased 6% to $6,576 million, from $6,193 million in Q1 FY14. Oracle's Software-as-a-service (SaaS) and Platform-as-a-service (PaaS) cloud revenue surged 32% Y-o-Y to $337 million in Q1 FY15. Further, the company's Infrastructure-as-a-service (IaaS) cloud revenue during the reported quarter increased 26% Y-o-Y to $138 million. However, Oracle's Hardware systems revenue in Q1 FY15 declined 8% to $1,165 million, from $1,261 million in Q1 FY14. The free research on ORCL can be downloaded as in PDF format at:

www.Investor-Edge.com/ORCLFreeReport

The company's Q1 FY15 GAAP operating income broadened 3% to $2,963 million, while the GAAP operating margin remained unchanged from the previous year at 34%. On non-GAAP basis, Oracle's operating income during Q1 FY15 grew 2% to $3,819 million, while the non-GAAP operating margin decreased by 1% Y-o-Y to 44%. The company's GAAP net income during the reported quarter stood at $2,184 million, or $0.48 per diluted share, compared with $2,191 million, or $0.47 per diluted share in the preceding year. The company's GAAP net income trailed Bloomberg analysts' forecasts of $2,342 million or $0.51 per share. On non-GAAP basis, the company's Q1 FY15 net income broadened to $2,806 million or $0.62 per diluted share from 2,761 million, or $0.59 per diluted share in Q1 FY14.

Safra Catz, co-CEO of Oracle Corp., stated that the company is increasing its cloud services growth rate while simultaneously delivering record levels of cash flow. She mentioned that in Q1 FY15, Oracle's overall cloud services business grew more than 30% to $475 million in revenue. At the same time, the company delivered an all-time record operating cash flow up 7% to $6.7 billion. Ms. Catz added that the company is off to a good start in FY15 and is focused on twin goals of growing its cloud business and cash flow.

Mark Hurd, co-CEO of Oracle Corp., mentioned that the company's internally developed Fusion cloud applications business grew at a rate of nearly 200% in Q1 FY15. He added that as the company's hyper-growth Fusion applications become a larger and larger portion of its total SaaS sales, it will drive up Oracle's overall cloud services growth rate. Mr. Hurd further stated that the Oracle's cloud business is already three times the size of Workday (Oracles' competitor), and the company would not be satisfied until it becomes number one in the cloud service. Sign up and read the free analyst's notes on ORCL at:

www.Investor-Edge.com/ORCL-25092014

Larry Ellison, Executive Chairman and CTO of Oracle, announced that the company will be rolling out its database cloud service at the upcoming Oracle Open World. He added that the database is the company's largest software business and will also be its largest cloud service.

During Q1 FY15, the company's board of directors announced a cash dividend of $0.12 per share on the company's outstanding common stock. The dividend will be paid on October 29, 2014, to the stockholders of record on October 08, 2014. Further, Oracle's Board of Directors also authorized the repurchase of up to an additional $13.0 billion of the company's common stock under its current share repurchase program in the forthcoming quarters.

Stock Performance  

A day after the earnings release, on September 19, 2014, Oracle Corp.'s shares nosedived 4.21% and ended the session at $39.80. The stock has moved slightly lower since then, although, on the last close, Wednesday, September 24, 2014, it finished at $39.42, 1.52% above its previous day's closing price. The stock vacillated between $38.57 and $39.56 during the last session. A total of 18.90 million shares were traded, which was above its three months average volume of 13.94 million shares. Over the previous three trading sessions and over the last one month, the company's shares have fallen by 0.95% and 5.31%, respectively. However, the stock has advanced 3.03% from the beginning of 2014. Oracle Corp. shares are trading below their 50-day and 200-day moving averages of $40.63 and $39.60, respectively. Furthermore, the stock traded at a PE ratio of 16.21 and has a Relative Strength Index (RSI) of 30.73. Visit Investor-Edge and access the latest research on ORCL at:

www.Investor-Edge.com/ORCLEarningsCoverage

Sneak Peek to Corporate Insider Trading  

In the last one month Oracle Corp. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on ORCL is available at:

www.Investor-Edge.com/ORCLInsiderTrading

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