Oracle Rocks 4Q Despite Sluggish Economy, But Predicts Tough Summer

June 26, 2008
miproconsulting
News

Oracle Corp. impressed the street by exceeding analyst expectations for its 4Q in a conference call Wednesday. For the period ended in May:

Net income rose 27% to $2.04B (.39/share) from $1.6B (.31/share) in the year-ago quarter. Oracle’s previous revenue growth projection was 14% to 18%.
Revenue increased 24% to $7.24B, and net income (excluding special items) would have been .47/share. Analysts estimates were $6.85B in revenue and earnings of .45/share, excluding special items.

While the results are very strong, Oracle’s guidance sent shares tumbling in after-hours trading:

Oracle Chief Financial Officer Safra Catz said the company’s strong sales should carry into its current quarter. But the company nonetheless issued profit guidance for that quarter, its first fiscal quarter, that was at the low end of analysts’ estimates.

Shares of Oracle fell as much as 4% Thursday to $21.60 in pre-market trading. The stock closed Wednesday at $22.55.

Overall, you have to be impressed with Oracle’s strategy, especially how quickly and cleanly they’ve handled the BEA acquisition, which just closed in April.