Oracle Beats Q4 2018 Estimates, Guidance Disappoints

Fiscal Q4 2018 results exceed analysts’ expectations

On June 19, Oracle (ORCL) announced its fiscal Q4 2018 results. For the past six quarters, the company’s quarterly results have exceeded analysts’ expectations, and fiscal Q4 2018 was no exception.

In fiscal Q4 2018, Oracle reported revenue and non-GAAP EPS of $11.25 billion and $0.99, respectively, beating analysts’ expectations by $60 million and $0.05. Its revenue grew 3% YoY (year-over-year), while its EPS were boosted by $5 billion in stock buybacks. In fiscal 2018, Oracle’s revenue grew 6% YoY to $39.8 billion, and it saw non-GAAP EPS of $3.12.

Oracle Beats Q4 2018 Estimates, Guidance Disappoints

Oracle’s quarterly trends

The chart above shows the company’s quarterly results. In the last 14 quarters, Oracle has exceeded analysts’ revenue expectations eight times. In fact, Oracle’s results have exceeded estimates for the past five quarters, and the company ended fiscal 2018 with its best annual growth rate in seven years. On the EPS front, Oracle’s performance has improved, exceeding estimates 13 times in the last 14 quarters.

Only cloud service and license support revenue grew in Q4 2018, by 8% to $6.8 billion. Its hardware revenue was flat, at $1.1 billion. Its cloud and on-premises software revenue shrank 5% to $2.5 billion, while its service revenue fell 1% to $883 million.