Earnings Review and Free Research Report: Oracle's Cloud Revenue Up 58%; GAAP EPS Grew 15%
Research Desk Line-up: Progress Software Post Earnings Coverage
LONDON, UK / ACCESSWIRE / July 5, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Oracle Corp. (NYSE: ORCL), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ORCL, following the Company's announcement of its fourth quarter 2017 results on June 21, 2017. The software giant's cloud revenue, new software license, and earnings all came in better than expected. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
http://protraderdaily.com/register/
Get more of our free earnings reports coverage from other constituents of the Application Software industry. Pro-TD has currently selected Progress Software Corporation (NASDAQ: PRGS) for due-diligence and potential coverage as the Company announced on June 28, 2017, its financial results for Q2 FY17 which ended on May 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Progress Software when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ORCL; also brushing on PRGS. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=ORCL
http://protraderdaily.com/optin/?symbol=PRGS
Earnings Reviewed
For the three months ended May 31 2017, the total revenue of Oracle increased 2.8% to $10.89 billion from $10.59 billion in the same quarter last year. The increase was largely attributable to increase in its SaaS (Software as a Service) cloud revenues which were up 67% to $964 million from $576 million in Q4 FY16. Cloud PaaS (Platform as a Service) plus IaaS (Infrastructure as a Service) revenues were up 40% to $397 million from $ 283 million in the same quarter last year. The Company's revenue numbers came in ahead of $10.46 billion expected by analysts.
For the reported quarter, Oracle's total software and cloud revenues were $8.9 billion, up 7% from Q4 FY16 and 4 points above the forecasted revenue.
During Q4 FY17, Oracle's gross margin for SaaS was 65% up from 54% in Q4 FY16 due to increase in its SaaS business. The gross margin for PaaS and IaaS was 47%, down from 54% in the same quarter last year, as the Company invested in its geographic build-out ahead of the bulk of the revenue recognition.
In Q4 FY17, the Company sold $855 million of new annually recurring cloud revenue (ARR) putting it over the $2 billion ARR bookings goal for fiscal year 2017. The Company's growth deferred revenue balance is more than $2.4 billion up 63% in US dollars for the reported quarter.
For the reported quarter, Oracle's net income was $3.23 billion and non-GAAP net income was $3.76 billion compared to $2.81 billion and $3.42 billion respectively for Q4 FY16. The Company's diluted EPS was $0.76 compared to $0.66 in the same quarter last year. Currency movements had a $0.01 negative impact on non-GAAP EPS and $0.02 negative impact on GAAP EPS. Post adjusting for stock-based compensation and other effects, the Company reported earnings of $0.89 per share, ahead of Wall Street's expectations of $0.87 per share.
Balance Sheet
As on May 31, 2017, Oracle's cash and cash equivalents were $21.78 billion up 8.1% from $20.15 billion in Q4 FY16. The notes payable increased 161% to $9.79 billion from $3.75 billion in the same quarter last year.
Oracle's operating cash flow increased 3.2% to $14.13 billion from $13.69 billion in the same quarter last year. The free cash flow was 130% of net income in Q4 FY17 compared to 140% in Q4 FY16.
On June 21, 2017, the Board of Directors declared a quarterly cash dividend of $0.19 per share of outstanding common stock. The next quarterly dividend will be paid to stockholders of record as of the close of business on July 19, 2017, with a payment date of August 02, 2017.
Outlook
For FY18, Oracle is forecasting to sell more than $2 billion in new cloud ARR. The Company expects more of its big customers to migrate their Oracle databases and database applications to the Oracle Cloud. These large-scale migrations will dramatically increase the size of both our PaaS and IaaS cloud businesses. These are expected to expand its operating margins and the Company expects earnings per share growth to accelerate in fiscal 2018. Oracle will continue to invest in capital in its cloud data centers expansion, but overall CapEx may be lower as the CapEx for real estate should be lower.
Stock Performance
Oracle's share price finished Monday's trading session at $49.36, sliding 1.56%. A total volume of 10.88 million shares have exchanged hands. The Company's stock price surged 10.65% in the last three months, 28.37% in the past six months, and 20.80% in the previous twelve months. Additionally, the stock rallied 28.37% since the start of the year. Shares of the Company have a PE ratio of 22.31 and have a dividend yield of 1.54%. The stock currently has a market cap of $204.43 billion.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: contact@protraderdaily.com
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily
