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HenryTo
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 Posted: Tue Sep 19, 2006 5:59 pm Post subject: Oracle (ORCL) |
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Oracle profit tops Wall Street forecasts. ORCL now at a new five-year high as I am typing this:
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Oracle profit tops Wall Street forecasts
Tuesday September 19, 7:46 pm ET
By Michael Kahn
SAN FRANCISCO (Reuters) - Oracle Corp. (NASDAQ:ORCL - News) posted a quarterly profit on Tuesday that topped Wall Street estimates as new business software license revenue rose, sending its shares up 13 percent to their highest in four years.
The company also said it posted its strongest first-quarter license growth in more than five years, gained share across all its product lines and forecast 22 percent to 24 percent revenue growth for the second quarter.
Kim Caughey, who helps manage more than $900 million in assets at Fort Pitt Capital Group, said the results showed the company is succeeding in keeping customers gained through a string of acquisitions that included PeopleSoft.
"It is one thing to just hold onto the customer," Caughey said. "It is another thing to get them to buy the next version as well. It looks like they are doing that."
More importantly, for many investors, the results represent another sign that Chief Executive Larry Ellison's strategy to lead consolidation of the business software market is working. The company spent some $20 billion over the past three years gobbling up rivals.
Net income for the fiscal first quarter rose 29 percent to $670 million, or 13 cents per share, from $519 million, or 10 cents per share, a year ago. Revenue rose nearly 30 percent to $3.59 billion from $2.77 billion.
Excluding items, Oracle said it posted a per-share profit of 18 cents. Analysts on average were expecting the world's biggest database software maker to post a per-share profit before items of 16 cents on revenue of $3.47 billion, according to Reuters Estimates.
Total software revenue rose 29 percent to $2.7 billion. New license revenue from applications soared 80 percent to $228 million -- easily surpassing a Wall Street target for a 66 percent gain.
Stripping out its Siebel, Portal and i-flex acquisitions, Oracle said revenue grew 47 percent as the company posted gains across all its geographic regions.
The Redwood Shores, California-based company said database and revenue gained 10 percent while services revenue rose 33 percent to $846 million.
The results come as investors are beginning to embrace the company's decision to spend $20 billion in the past three years to push into the market for business applications as its core database software market matures.
Oracle shares have gained about 32 percent since June 15 when it first told investors of stronger-than-expected software license revenue for the fiscal fourth quarter. At the same time shares in its major rival, Germany's SAP AG (XETRA:SAPG.DE - News), have fallen about 5 percent.
Ellison also vowed to keep buying rivals to close the gap with SAP, which has met Oracle's challenge by focusing on winning new business rather than buying it via acquisitions.
"Oracle's acquisition strategy has moved us ahead of SAP in several industries," Ellison said on a conference call. "Oracle will continue to acquire industry knowledge and products. We believe SAP must do the same or SAP will become progressively less competitive in several industries."
In July SAP posted an 8 percent gain in license sales for the second-quarter compared with market expectations for 17 percent growth and the company's own 15 percent to 17 percent full-year target.
Yet analysts say the two rivals are largely taking share from smaller companies, though Oracle is pegged to grow faster in the applications market in 2006.
According to research firm AMR, SAP's share of the business applications market is expected to grow to 43 percent in 2006 from 42 percent while Oracle's share is seen rising to 23 percent from 20 percent.
The next biggest competitor, Sage Group Plc (London:SGE.L - News), will shrink to 5 percent from 6 percent in the same period, AMR predicts.
Looking at the current second quarter, the company said it sees a per-share profit before items of 22 cents -- in line with the average Wall Street forecast.
The company's shares jumped nearly 13 percent to $18.20 in electronic trading from a Nasdaq close of $16.13.
Last edited by HenryTo on Wed Sep 16, 2009 2:53 pm; edited 1 time in total |
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HenryTo
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| Posted: Wed Mar 21, 2012 11:36 am Post subject: |
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Morningstar on ORCL's fiscal 3Q earnings.
| Quote: | | Oracle ORCL reported 4% year-over-year growth in third-quarter revenue, excluding the effects of currency movements, as an 8% increase in sales of software licenses offset continued steep declines in the hardware business. Importantly, software license revenue increased an unusually high 16% sequentially, supporting management's prior assertion regarding deal slippage at the end of the weak second quarter. We agree with management's strategy of focusing on differentiated hardware products, although the hardware business continues to be a significant drag on results while the company eliminates sales of low-margin third-party and nondifferentiated products. Meanwhile, sales of Oracle's high-margin proprietary hardware products appear to be doing well; management claimed that Exadata sales doubled year over year, and the new Exalytics appliance is off to a stronger start than previous engineered systems. Management expects the hardware business to grow next fiscal year as growth in sales of proprietary systems should more than offset declines in sales of commodified products. Oracle's cloud platform and some Fusion applications will be commercially available for customers in the fourth quarter and should help stem recent competitive losses to software-as-a-service vendors. The upcoming release includes Fusion cloud applications in the areas of customer relationship management, human capital management, and financial management and should particularly strengthen Oracle's value proposition versus privately held Workday. We think the flexible deployment model made possible by Fusion applications will prove to be a significant competitive edge versus SaaS-only rivals and will enable Oracle to retain the vast majority of its customer base in the transition to cloud-based services over the next several years. |
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rffrydr
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| Posted: Thu Dec 22, 2011 8:39 pm Post subject: |
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Gonna be a tough quarter for biz-to-biz.....they were all busy spooking each other. And currency translation always gets undue due in tech. But they'll come around too. 
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Today is the Tomorrow you worried about Yesterday! |
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HenryTo
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| Posted: Thu Dec 22, 2011 5:51 pm Post subject: |
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Morningstar on ORCL's fiscal 2Q results; believes shares are undervalued.
| Quote: | | The performance of Oracle's ORCL core software business during the second quarter of fiscal 2012 was below the range of our expectations. New license revenue, which generates a future stream of recurring and highly profitable maintenance fees, grew at the weakest pace since the June-August 2009 quarter. Furthermore, the results of the hardware segment, which posted the third straight year-over-year decline in quarterly revenue, were disappointing. Not surprisingly, results from Europe and North America reflected difficult business conditions. While year-to-date revenue is slightly trailing our current-year projection, operati ng income is ahead of our expectations. We are leaving our fair value estimate unchanged. Oracle's subpar quarterly results were partially a result of some delayed deals caused by clients' additional approval processes and by some customers' desire to evaluate the company's new SPARC T4 processor (introduced in late September) before placing hardware orders. Nonetheless, Oracle's meager results in light of its position as a provider of core software products (for example, databases), its exclusive focus on large enterprises and government entities, and recent quarter-end (Nov. 30) may also be an early sign of an upcoming downturn not only in the enterprise software industry, but also in the wider information technology sector. Overall, we believe Oracle's long-term hardware strategy--staked around Exadata, Exalogic, and an expanding array of highly engineered systems--remains intact. Nonetheless, management acknowledged that achieving the previously stated goal of selling 3, 000 Exadata systems during the current fiscal year will be challenging. In fact, management's third-quarter guidance for the hardware segment foretells further challenges to this business. Still, looking below the aggregate numbers, there were some positive underlying trends in the hardware segment. For instance, the Exadata business grew more than 100% year over year, and Exalogic increased more than 100% sequentially. We believe the solid growth of these high-end products was a driving factor behind the 4 percentage points in gross margin expansion for the overall hardware segment. Meanwhile, despite adding 1,700 salespeople during the first half of the fiscal year, management has kept costs under control. Operating margins for the quarter increased 3 percentage points to 35.4%. We continue to believe that the shares remain significantly undervalued and view the board's decision to authorize as much as an additional $5 billion in stock repurchases as a good way to deploy t he company's growing cash balance. |
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HenryTo
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| Posted: Wed Sep 21, 2011 11:37 am Post subject: |
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Morningstar on ORCL's fiscal 1Q results:
| Quote: | | Strong demand for database and enterprise software applications drove Oracle's ORCL growth and profitability during the first quarter of fiscal 2012. We are leaving our fair value estimate of $41 per share unchanged and emphasize that priced at 11.9 times our estimated fiscal 2012 earnings, the shares continue to represent an attractive long-term investment opportunity. As expected, the hardware segment, which accounts for about 20% of total revenue, posted a nearly 1.5% year-over-year decline. However, we remain unconcerned about the underwhelming top-line performance of the segment. To the contrary, the hardware results reflect Oracle's continuing efforts to wind down unprofitable hardware products (for example, low-end servers or third-party products), rather than weak underlying demand for the company's high-end hardware products. Investors should brace for a few more quarters of subpar growth in the hardware business as Oracle continues to transition to a premium-priced hardware strategy. In the meantime, we see double-digit growth in the high-end servers (Exadata, Exalogic, and M-series servers) and 5 percentage points in overall hardware gross margin improvement as encouraging signs of the company's progress in this segment. Oracle's core software business performed strongly. New software licenses and software maintenance fees each increased 17% year over year. Solid growth combined with cost controls enabled the company to expand operating margins nearly 7 percentage points to 32%. Oracle's wide economic moat and strong, resilient business model should enable the company to continue to d o well in a tough macroeconomic environment. |
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HenryTo
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| Posted: Fri Jun 24, 2011 2:38 pm Post subject: |
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Morningstar relatively upbeat on ORCL's 4Q results:
| Quote: | | Oracle's ORCL fiscal 2011 and fourth-quarter results were in line with our expectations. We are leaving our fair value estimate unchanged. With the exception of the hardware business, all product segments and geographies posted solid year-over-year results, driven by a double-digit increase in new software license and maintenance revenues. During the fourth quarter, hardware system sales declined 6% year-over-year, which was offset by a solid increase in hardware support fees. On the surface, the flat revenue growth in the hardware segment seemed disappointing. However, annual hardware revenues matched our original projection of $6.9 billion, which was significantly below management's projection of $9.6 billion soon after the acquisition of Sun was completed. Nonetheless, Oracle isn't chasing profitless hardware sales just for the sake of growth. Rather, the company continues to position its hardware segment to generate profitable growth through a premium pricing strategy. According to industry data from Gartner, during the last two years since Oracle announced the acquisition of Sun, its hardware unit sales have declined almost 40%, but average unit prices have increased nearly 120%. Hardware top line will increase as third party reselling agreements come to an end and high-end, high-margin systems such as Exadata, Exalogic, and similar upcoming systems continue to gain traction in the market. After a relatively quiet period on the acquisition front, Oracle announced this week the acquisition of FatWire, a privately-owned provider of web experience management. The acquisition appears to be a good fit for Oracle's software stack, particularly around the company's e-commerce platform. |
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HenryTo
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| Posted: Sat Mar 26, 2011 2:07 pm Post subject: |
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Morningstar on ORCL's 3Q earnings:
| Quote: | | Oracle's ORCL third-quarter results for fiscal 2011 were solid, with every business segment and geography posting double-digit growth. We view the board's decision to raise the quarterly dividend 20% to $0.06 per share as a reflection of confidence in the business. We are leaving our fair value estimate unchanged. For the quarter, total revenue of $8.7 billion increased 37% year over year, or about 19% excluding $1.7 billion in revenue from the new hardware business. More important, the underlying performance of the company's core software business continues to be strong, demonstrated by the 29% year-over-year growth in new software license revenue. While the hardware segment declined sequentially, revenue and unit sales of Exadata and Exalogic--Oracle's state-of-the-art hardware solutions--grew more than 50% sequentially. In addition, gross margins in this segment have steadily increased since the acquisition of Sun. Meanwhile, operating margins of 34% increased 5 percentage points as the company continues to do a good job at leveraging its operations. |
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HenryTo
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| Posted: Fri Dec 17, 2010 2:26 pm Post subject: |
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Morningstar on ORCL's 2Q earnings:
| Quote: | | Oracle's ORCL solid second-quarter results for fiscal 2011 exceeded our expectations. The company's strategy of providing complete IT solutions featuring tightly integrated software and hardware components is yielding positive results, contributing to double-digit growth in new software licenses and steady margin improvement in the hardware business. The results also reinforce our confidence in Oracle's ability to sustain its wide economic moat through the unique combination of its software and hardware solutions. We plan to increase our fair value estimate to reflect our updated near-term growth and profitability assumptions . Total revenue of $8.5 billion increased 46.5% from the prior-year period, or about 17% after adjusting for roughly $1.8 billion contributed by Sun's hardware business. The results were solid across the board, with double-digit revenue growth in all geographies, new software licenses, maintenance fees, and services. Management has done a commendable job of turning around Sun's floundering hardware business. Although the end of the quarter marked only the 10th month since the Sun acquisition, the steady and significant improvements in the hardware segment, which reached nearly 53% gross margins during the quarter, show that the business is now on solid footing. More important, the performance of the hardware business should finally dispel any investors' doubts about Oracle's commitment or ability to run the hardware business. Management has the ambitious goal of surpassing Hewlett-Packard HPQ and IB M IBM in the high-end server market. We expect hardware rivals to respond to Oracle's emerging threat by adopting a similar software/hardware strategy. For instance, IBM recently acquired Netezza--a provider of database appliances--to compete more effectively with Oracle's Exadata solution. However, Oracle has a fair chance of eventually surpassing its hardware competitors, given that it possesses key assets to provide differentiated and complete high-end IT solutions. |
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HenryTo
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| Posted: Fri Sep 17, 2010 10:50 am Post subject: |
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Morningstar on ORCL's 1Q earnings:
| Quote: | | Results from Oracle's ORCL first quarter, which typically represents the weakest period of the firm's fiscal year, were impressive. While the recent acquisition of Sun contributed to the strong reported revenue growth, the results showed strong underlying demand for the company's software solutions. We are leaving our fair value estimate unchanged. During the quarter, revenue of $7.5 billion--including a $1.7 billion contribution from the new hardware business--increased 48% year over year. The solid growth in new software license revenue is significant because it shows that demand for Oracle's database, middleware, and applications solutions is improving. Furthermore, new license sales form the base of a long-term stream of highly profitable maintenance fees. Fro m a geographic point of view, all regions grew at a solid pace. However, revenue from software applications declined for the second straight quarter in Europe, largely as a result of lingering economic concerns in the region. As expected, operating margins of nearly 26% declined from the year-ago period because of the lower overall profitability of the hardware business. However, since the acquisition of Sun earlier this year, hardware gross margins have consistently improved, reaching almost 50% in the quarter. Management indicated that there is further room to improve the profitability of the hardware segment--and by extension, Oracle's operating margins--by streamlining and expanding the hardware business. Meanwhile, free cash flow generation as a percentage of revenue over the past 12 months remains solid. |
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HenryTo
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| Posted: Fri Jun 25, 2010 1:11 pm Post subject: |
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Morningstar's latest notes on ORCL. Europe remains a challenge.
| Quote: | | Oracle ORCL ended fiscal 2010 with solid fourth-quarter results that largely matched our expectations. We are leaving our fair value estimate unchanged. For the year, total revenue of $26.8 billion increased 15%, which includes a $2.3 billion revenue contribution from the recent acquisition of Sun. All of the company's software and services segments continued to show improvement during the fourth quarter. However, it is too early to assume that Oracle's results augur an improving environment for enterprise IT spending. In fact, management acknowledged that a number of large European clients are facing challenges. Operating margins for the year of almost 34% declined 2 percentage points on a year-over-year basis because of the lower profitability of the hardware segment. However, hardware gross margins of around 46% during the fourth quarter improved significantly on a sequential basis as a result of Oracle's decision to stop selling some of Sun's unprofitable products. Meanwhile, the firm's ability to generate cash remains solid; Oracle ended the year with free cash flow at 32% of revenue. |
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HenryTo
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| Posted: Wed Sep 16, 2009 2:55 pm Post subject: |
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Oracle reverses its streak of beating expectations, as the stock slides nearly 3% in AH trading as the company misses revenues expectations:
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Oracle shares fall after revenue misses Street view
On Wednesday September 16, 2009, 4:31 pm EDT
BOSTON (Reuters) - Oracle Corp (NasdaqGS:ORCL - News), the world's No. 3 software maker, posted lower-than-expected quarterly revenue that missed Wall Street projections, sending its shares down 2.4 percent.
Total revenue -- which includes software sales as well as fees for maintenance of previously purchase programs -- fell 5 percent to $5.05 billion in Oracle's first quarter ended August 31. That missed analysts' average forecast of $5.24 billion.
The software giant run by billionaire Larry Ellison reported profit, excluding special items, of 30 cents per share, matching Wall Street expectations according to Reuters Estimates.
Oracle President Safra Catz said in a statement that the company was able to offset the revenue decline by boosting its operating margins during the quarter.
Net income rose 4 percent to $1.12 billion, or 22 cents per share, from $1.08 million, or 21 cents per share, a year earlier.
The software maker's shares fell 3.3 percent to $21.40 in extended trading. They had fallen 53 cents to $22.13 in regular Nasdaq trade. |
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HenryTo
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| Posted: Thu Sep 18, 2008 5:30 pm Post subject: |
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ORCL beats estimates - stock is up over 5% in AH trading.
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Oracle 1Q profit rises 28 percent, beats Street
Thursday September 18, 6:53 pm ET
By Jessica Mintz, AP Technology Writer
Oracle 1st-quarter profit climbs 28 percent to beat Street despite turbulent economy
Oracle Corp. said Thursday its fiscal first-quarter profit jumped 28 percent, beating Wall Street's expectations, as software sales stayed steady despite turmoil in the U.S. economy.
The business software maker's net income for the three months ended Aug. 31 rose to $1.08 billion, or 21 cents per share, from $840 million, 16 cents per share, a year ago.
Excluding expenses for employee stock options and acquisitions, Oracle posted earnings of 29 cents per share, two cents more than analysts had expected, according to a Thomson Reuters poll.
Revenue increased 18 percent to $5.33 billion.
New software license sales, a measure closely watched by investors, increased 14 percent, within the 10 percent to 20 percent range Oracle had predicted. The Redwood Shores, Calif.-based company said changes in foreign exchange rates accounted for 4 percentage points of the increase, less than the 5 percentage points it had originally expected.
Revenue from software license updates and product support increased 23 percent to $2.94 billion.
Looking ahead to the current second quarter, Oracle expects new software license sales will grow by a potentially lesser amount: 2 percent to 12 percent, or 5 percent to 15 percent excluding the effect of currency fluctuations, said Chief Financial Officer Safra Catz. In the same quarter last year, sales of new licenses jumped 38 percent.
Still, Oracle forecast adjusted earnings per share of 35 to 36 cents per share in the current quarter. Analysts were already expecting 35 cents per share.
Catz appeared unfazed about the ongoing turmoil in the financial sector, and confident that customers won't be cutting Oracle from their budgets.
"The company has so much momentum, such a broad product line. If the customer is buying they're likely to buy from us," she said. "If they've got to decide something not to spend on, it's probably with some smaller guy."
Analyst Trip Chowdhry of Global Equities Research said he believes Oracle was trying to keep its tone positive ahead of Oracle OpenWorld, a major conference that begins Saturday. The analyst said he believes Oracle's weak new software license sales forecast indicates a slowdown ahead for information technology spending.
But the report and Catz's comments appeared to satisfy investors who had feared the weakened economy would dampen demand for the business software maker's products. Shares of Oracle gained $1.10, or 5.9 percent, to $19.85 in after-hours trading, after adding 65 cents, or 3.6 percent, to end the regular session at $18.75. |
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HenryTo
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