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% |
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) |
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% |
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:
- SAP (NYSE:SAP)
- CA (NYSE:CA)
- IBM (NYSE:IBM)
- Microsoft (NASDAQ:MSFT)
- Accenture (NYSE:ACN)
- Sybase (NYSE:SY)
Related Foolishness:
- Oracle Flexes Again
- Risks and Profits in Oracle's Future
- Dueling Fools: Oracle Bull
- Dueling Fools: Oracle Bear
Microsoft and Accenture are Motley Fool Inside Value selections. Find out more about the value Philip Durell sees in these and other recommendations with a free 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 check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributor Anders Bylund had positions in none of these companies. Fool rules are here.
