Why Oracle Stock Fell Last Week
Oracle stock falls 5.5%
Oracle (ORCL) stock fell ~5.5% in the week ended September 15, 2017, to close at $48.74. The stock is now trading 30% above its 52-week low of $37.61 and 8.3% below its 52-week high of $53.14. Oracle announced its fiscal 1Q18 results on September 14, 2017. Its stock fell 7.5% the next day, driven by lower-than-estimated guidance.
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Oracle beats earnings and revenue estimates in fiscal 1Q18
In fiscal 1Q18, Oracle reported revenue of $9.2 billion, a rise of 7% YoY (year-over-year). Its net income was $2.2 billion, with GAAP (generally accepted accounting principles) EPS (earnings per share) of $0.52 and non-GAAP EPS of $0.62. In fiscal 1Q17, the company reported net income of $1.8 billion, with EPS of $0.43.
In fiscal 1Q18, analysts expected Oracle to post non-GAAP EPS of $0.60 and revenue of $9 billion. Revenue from Oracle’s cloud business segment rose 51% YoY to $1.5 billion, which was within the company’s estimate of 48%–52% YoY growth.
Oracle expects revenue growth of 2%–4% in fiscal 2Q18, with non-GAAP EPS of $0.64–$0.68. The company expects cloud revenue to rise 39%–42% in fiscal 2Q18. Analysts expected the company to post revenue of $9.5 billion, with EPS of $0.68.