Please ensure Javascript is enabled for purposes of website accessibility

Oracle Reports Second-Quarter Results Above Analyst Targets

By Anders Bylund - Dec 18, 2013 at 5:50PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Enterprise software giant Oracle just reported second-quarter results, sending its shares on a wild after-market ride.

Shares of enterprise software giant Oracle (ORCL 3.11%) are going through choppy trading in after-hours action following the release of Oracle's second-quarter results.

Non-GAAP earnings increased 7% year over year to $0.69 per share, ahead of Wall Street's $0.67 target. Revenue increased 2% to $9.3 billion, edging out analysts' $9.2 billion estimate. Both earnings and sales were held back by currency exchange effects as the dollar strengthened against other major currencies in the last year.

Falling hardware sales were canceled out by rising hardware support contracts. Sales of new software licenses came in flat but Oracle notched a 6% increase in license renewals.

Oracle shares jumped as much as 3.5% higher on this release, but also plunged as much as 2.7%. This jumpy action follows on a 2.9% gain in Wednesday's regular session. Oracle shares have seen a rocky ride in 2013, bouncing between $30 and $36 in several sharp reversals.

The earnings release did not provide any forward guidance. Management did say that hardware products should show revenue growth next quarter, thanks to a new line of SPARC-branded big-data appliances and strong demand for Exadata storage products.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Oracle Corporation Stock Quote
Oracle Corporation
$71.88 (3.11%) $2.17

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.