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Oracle posts a first-quarter revenue beat, misses on earnings

Yahoo Finance's Jared Blikre joins the Live show to break down Oracle's first quarter earnings report.

Video Transcript

- We need to get to some breaking news, Oracle reporting its first quarter earnings. Jared Blikre has the numbers for us. Hey Jared.

JARED BLIKRE: Hey there. You can see the stock down just slightly in after hour tradings. That is first after first quarter. Adjusted EPS came a little bit shy of expectation, that would be $1.03 versus $1.06.

Also want to make a note that the US dollar weighed on results quite a bit. Here's a note from the report, strengthening of the USD compared to foreign currencies had a significant impact on results in the quarter. Without that impact, we would have had higher GAAP and non-GAAP earnings per share of $0.08. So that is fairly significant there.

Adjusted revenue coming in, we're going to call this in line, $11.45 billion. That is up 18% year-over-year. And then you break it down by segment here. Cloud services and license support revenue $8.42 billion, cloud license and on-premise license revenue $904 million, that's up 11% per year, and also topping estimates of $891 and a half million.

Hardware revenue $763 million, beating estimates of $743.1 million. Services revenue, here's a big beat, $1.36 billion, that is up 74% year-over-year. Estimate was for $893.7 million.

And you can see the stock price rising now as I say these numbers. Adjusted operating income $4.48 billion, that's up 3.3% year-over-year. And that is just shy of the estimate, maybe call it in line of the $4.49 billion. Finally, one more key stat here, operating margin 39% versus 45% a year ago, and slightly lower than 39.6% estimated by the street.

And I do have a quote from the Oracle CEO Safra Catz, in quarter one, total revenue grew by 23% in constant currency beating guidance by $200 million. Even without Cerner, our total revenue grew 8% in constant currency driven by Oracle's rapidly growing applications and infrastructure cloud businesses. These two cloud businesses now account for more than 30% of our total revenue." So talking about the legacy tech company right there, as you can see on your screen, up just nominally in after hours trading, guys.