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What Drove Oracle’s Q3 Earnings Results?


Nov. 20 2020, Updated 12:15 p.m. ET

Oracle beat Q3 earnings estimates

Cloud services company Oracle (ORCL) posted adjusted earnings of $0.87 per share in the third quarter of fiscal 2019, which exceeded analysts’ expectations of $0.84 per share and increased from the year-ago earnings of $0.81. Oracle’s quarterly results have exceeded the consensus estimates for the past nine quarters.

In comparison, Oracle’s peers Symantec (SYMC), Microsoft (MSFT), and IBM (IBM) also reported upbeat earnings in their recently reported quarters.

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Earnings drivers

Oracle’s adjusted earnings of $0.87 grew around 8% on a YoY basis, surpassing the company’s expectations of $0.83 to $0.85 per share. Earnings increased 12% on a constant currency basis, driven by revenue growth of 3%, margin improvements, and significant share buybacks. The company is focusing on its cloud business, which has a higher margin than the lower margin hardware business.

Adjusted operating income grew 2% YoY, while on a constant currency basis, operating income increased 5% YoY. Operating margins improved to 44%, up 115 basis points from the year-ago quarter.


Oracle’s CEO Safra Catz expects the company to deliver adjusted earnings per share in the range of $1.05 to $1.09 for the fourth quarter in comparison to analysts’ earnings expectations of $1.06 per share. The company expects currency headwinds to impact earnings by $0.03 per share. Reportedly, the management also expects double-digit earnings growth in 2019.


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