Oracle’s EPS grew
On December 17, Oracle (ORCL) announced its earnings for the second quarter of fiscal 2019. The company’s revenue growth of 2% in constant currency terms was at the high end of its expectations. Oracle expected revenue growth of 0%–2% on a year-over-year basis. The company’s EPS growth was also better than expected. Oracle’s EPS grew 19% in constant currency terms—better than its own guidance of 11%–15% growth. The results buoyed investors. Oracle stock rose 6% in after-market hours on December 17.
Oracle also provided a good outlook for the current quarter. The company expects its revenues to increase 2%–4% in the current quarter in constant currency terms. However, Oracle expects headwinds of 4% on its revenue growth due to the strengthening US dollar. Oracle expects its EPS for the third quarter of fiscal 2019 to increase 7%–9% in constant currency terms. Oracle expects that the rising dollar will shave off 4% growth from its EPS in the current quarter.