The 10-second takeaway
For the quarter ended Nov. 30 (Q2), Oracle beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Margins grew across the board.
Oracle booked revenue of $9.11 billion. The 32 analysts polled by S&P Capital IQ expected a top line of $9.02 billion on the same basis. GAAP reported sales were 3.4% higher than the prior-year quarter's $8.79 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.64. The 36 earnings estimates compiled by S&P Capital IQ predicted $0.61 per share. GAAP EPS of $0.53 for Q2 were 23% higher than the prior-year quarter's $0.43 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 80.3%, 250 basis points better than the prior-year quarter. Operating margin was 38.3%, 230 basis points better than the prior-year quarter. Net margin was 28.4%, 350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $9.38 billion. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $38.22 billion. The average EPS estimate is $2.71.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,418 members out of 3,629 rating the stock outperform, and 211 members rating it underperform. Among 824 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 788 give Oracle a green thumbs-up, and 36 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oracle is outperform, with an average price target of $35.53.
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