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.
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.