The 10-second takeaway
For the quarter ended May 31 (Q4), Oracle met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.
Margins increased across the board.
Oracle chalked up revenue of $10.96 billion. The 35 analysts polled by S&P Capital IQ foresaw revenue of $11.12 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.87. The 38 earnings estimates compiled by S&P Capital IQ averaged $0.88 per share. Non-GAAP EPS of $0.87 for Q4 were 6.1% higher than the prior-year quarter's $0.82 per share. GAAP EPS of $0.80 for Q4 were 18% higher than the prior-year quarter's $0.68 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 91.3%, 970 basis points better than the prior-year quarter. Operating margin was 43.6%, 90 basis points better than the prior-year quarter. Net margin was 34.8%, 320 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $8.47 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $39.01 billion. The average EPS estimate is $2.90.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 3,491 members out of 3,705 rating the stock outperform, and 214 members rating it underperform. Among 807 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 768 give Oracle a green thumbs-up, and 39 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 $37.55.
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