Oracle’s Stock Skyrockets After Taking Analysts by Surprise with Strong Q1 Earnings

Man in business suit cheering at laptop screen

Source: Pexels | Photographer: Andrea Piacquadio

Reading time: two minutes

In just three months, Oracle Corp. has managed to turn its declining sales into a decisive rally. Here is how the company fared throughout its first fiscal quarter for 2021.

The software developer’s shares received a solid 6% price bump on Thursday after the company reported earnings figures that exceeded analysts’ expectations. Here are the results:

 

– Earnings: 93 cents per share vs. expectations for 86 cents

– Revenue: $9.37 billion (2% growth Y/Y) vs. expectations for $9.19 billion

– Cloud services and license support segment: generated $6.95 billion (2% growth Y/Y) vs. expectations for $6.93 billion

– Two new clients: Oracle was proud to announce that McDonald’s and Xactly are now using its cloud offerings

 

In the words of CEO Safra Catz, COVID-19 had “only briefly interrupted” the company’s business. The virus was previously cited as the main culprit behind last quarter’s disappointing results. Recently, there have been unconfirmed rumours that the company is planning on acquiring TikTok’s U.S., Canada, Australia and New Zealand operations from the Chinese company ByteDance. Last month, U.S. President Donald Trump was quick to point out that Oracle could “handle” part of the Chinese video-sharing app, despite any clear lack of evidence that such deal is actually in the works.

 

Fiscal guidance for Q2

In the three months to follow, Oracle expects 98 cents to $1.02 as earnings per share, as well as revenue growth in the 1% – 3% range. The company, however, did not issue full-year guidance. Oracle shares have seen a rise of close to 8% since the start of this year.


Upcoming reports

See the full list of upcoming earnings reports for September 14th – 18th in the tables below.

Monday, September 14th 2020

Country of originCompany nameFiscal period
United KingdomSuperdry PLCFull year 2020

Tuesday, September 15th 2020

Country of originCompany nameFiscal period
USAFedEx CorpFirst quarter of 2021
USAAdobe IncThird quarter of 2020

Wednesday, September 16th 2020

Country of originCompany nameFiscal period
SpainIndustria de Diseno Textil SAHalf year 2020

Thursday, September 17th 2020

Country of originCompany nameFiscal period
USAProgressive CorpFinancial report for August 2020
United KingdomKier Group PLCFull year 2020
United KingdomNext PLCHalf year 2020

Friday, September 18th 2020

Country of originCompany nameFiscal period
United KingdomCity of London Investment Trust PLCFull year 2020

***

Looking to trade on the global markets, but have little or no experience? Open a demo account in Delta Trading and test your boldest strategies in a real market environment, without the risk of losing real funds.

 

Posted in Market news and tagged , , , , , , .

Leave a Reply

Your email address will not be published. Required fields are marked *