Shares of Oracle Corp. (ORCL) gained over 9% in extended hours on Monday after the business software giant reported after the company’s fourth-quarter profit and revenues trumped Wall Street estimates, helped by cloud revenues.
Redwood Shores, California-based Oracle reported fourth-quarter profit of $3.19 billion or $1.16 per share, down from $4.03 billion or $1.37 per share last year.
On an adjusted basis, earnings for the quarter were $4.24 billion or $1.54 per share for the period, down from $4.52 billion or $1.54 per share last year. Analysts polled by Thomson Reuters expected earnings of $1.37 per share. Analysts’ estimates typically exclude special items.
Revenues for the quarter rose 5% to $11.84 billion from $11.23 billion last year. Analysts had a consensus revenue estimate of $11.66 billion.
Cloud services and license support revenues rose 3% to $7.61 billion, while Cloud license and on-premise license revenues rose 18% to $2.54 billion. Hardware revenues dropped 3% to $856 million, while services rose 3% to $833 million.
Oracle CEO Safra Catz said, “These consistent increases in our quarterly revenue growth rate typically have been driven by our market leading Fusion and NetSuite cloud applications. But this Q4, we also experienced a major increase in demand in our infrastructure cloud business—which grew 39% in constant currency.”
The board of directors declared a quarterly cash dividend of $0.32 per share. The dividend will be paid on July 26 to stockholders as of July 12, 2022.
ORCL closed Monday’s trading at $64.05, down $3.09 or 4.60%, on the Nasdaq. The stock, however, gained $5.85 or 9.13%, in the after-hours trading.
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