Oracle Impresses: Fool by Numbers

On Tuesday, business software giant Oracle (Nasdaq: ORCL  ) released Q1 2007 earnings for the period ended Aug. 31.

  • Its sales growth -- 26% -- is very impressive for a company as big as Oracle. According to Capital IQ, only 22 of the 298 companies with revenues above $2.7 billion in the year-ago quarter can match or beat Oracle's 26% top-line, year-over-year growth.
  • Margins haven't moved much from last year, but that's actually a good thing, considering the broad-spectrum drop in margins in the interim.
  • Cash flow growth isn't quite keeping up with sales or earnings, but 12% is still a respectable increase and an indication of a healthy business overall.

(Figures in millions, except per-share data)

Income Statement Highlights*

Avg. Est.

Q1 2007

Q1 2006

Change

Sales

$3,470

$3,661

$2,907

25.9%

Net Profit

--

$931

$738

26.2%

EPS

$0.16

$0.18

$0.14

28.6%

Diluted Shares

--

5314

5244

1.3%

*Based on pro forma numbers provided by the company, to keep comparisons with estimates fair.

Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

73.45%

75.23%

(1.83)

Operating Margin

36.00%

35.16%

(0.84)

Net Margin

25.43%

25.39%

(0.04)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$8,298

$4,632

79.1%

Accounts Rec.

$2,118

$1,651

28.3%

Inventory

No Data

No Data

No Data



Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$223

$228

(2.2%)

Long-Term Debt

$5,737

$1,679*

241.7%

*Including $1,522 million of short-term and current long-term debt in Q1 2006.

Learn the ways of the balance sheet.

Cash Flow Highlights

Q1 2007

Q1 2006

Change

Cash From Ops.

$1,623

$1,458

11.3%

Capital Expenditures

$49

$52

(5.8%)

Free Cash Flow

$1,574

$1,406

11.9%



Find out why Fools always follow the money.

Related companies:

Related Foolishness:

Microsoft and Accenture areMotley Fool Inside Valueselections. Find out more about the value Philip Durell sees in these and other recommendations with afree 30-day trial subscription.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.comfor more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool contributorAnders Bylund had positions in none of these companies. Fool rules are here.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 516024, ~/Articles/ArticleHandler.aspx, 10/21/2014 3:45:54 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement