2023-12-11 17:21:54 ET
Oracle Corp (NYSE: ORCL) tanked about 9.0% in extended hours even though it reported better-than-expected per-share earnings for its second financial quarter.
Why is Oracle stock down in after-hours?
The stock is being punished primarily because the quarterly revenue came in shy of Street estimates.
Oracle said its revenue from cloud and on-premise licenses, cloud services and license support, and services – all fell short of experts’ forecast in Q2. John DiFucci – a Guggenheim analyst recently told clients in a research note:
Oracle is not immune to the macro backdrop – no one is – but partner checks indicated a surprising resiliency in this business relative to others.
He sees upside in the tech stock to $150 which suggests close to a 45% upside from here.
Notable figures in Oracle Q2 earnings release
- Earned $2.5 billion versus the year-ago $1.74 billion
- Per-share earnings also climbed from 63 cents to 89 cents
- Adjusted EPS printed at $1.34 as per the press release
- Revenue jumped 5.0% year-over-year to $12.94 billion
- Consensus was $1.32 a share on $13.05 billion revenue
Oracle expanded its cloud collaboration with Microsoft Corp in its fiscal Q2. Its cloud infrastructure revenue popped 52% year-on-year to $1.60 billion in the recently concluded quarter. In his recent interview with CNBC , Sarat Sethi – Managing Director of DCLA said:
Watch here: https://www.youtube.com/embed/5HFTdl6wono?feature=oembedCloud acceleration and [then] acquisition of Cerner will be another leg of growth. Stock trades at high teens multiple. People think of it as an old-time stock, but it does have growth and it’s fairly priced.
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