Oracle 4th-Qtr Earnings at 36C a Shr: Earnings Instant Insight
6/15/99 16:12
Redwood Shores, California, June 15 (Bloomberg) -- The
following is a summary of Oracle Corp.'s fiscal fourth-quarter
earnings.
Expected Market Reaction:
Rise. Oracle's net income was $527 million, or 36 cents a
share, for the period ended May 31, from a profit of $402.8
million, or 27 cents a diluted share, in the year-ago quarter.
The No. 1 database software maker was expected to report per-
share earnings of 32 cents, the average forecast of analysts
polled by First Call Corp. Estimates ranged from 35 to 29 cents
and the ''whisper'' estimate was 32 cents. Some analysts had
lowered their earnings estimates around May 13. The original
average estimate for the quarter had been 33 cents.
The year-ago results account for a 3-for-2 stock split on Feb.
26.
Behind the Numbers
Revenue rose to $2.9 billion from $2.4 billion. Revenue was
expected to be $2.6 billion to $2.9 billion, according to a
survey of four analysts.
Analysts had been expecting a slowdown in sales of Oracle's
flagship database software and application programs because
corporations are delaying software purchases to fix their Year
2000 computer glitches. Oracle's mainstay database software often
is sold when corporations buy the company's applications
software.
What the Experts Say
''The real question with Oracle this quarter is not the
earnings, it's the revenue,'' said Gary Abbott, an analyst at
Punk Ziegel & Co., who rates the stock ''market performer.''
Previous Market Reaction
Oracle shares tumbled 23 percent on March 12 after its
fiscal third-quarter revenue lagged some analysts' estimates.
Investors were concerned that sales growth wouldn't pick up any
time soon. That prospect dragged other tech stocks lower.
Market Performance
Oracle's shares have fallen 32 percent during the quarter
ended May 31 amid concern about slowing revenue, both in database
and applications software as well as total revenue overall.
The results were released after the close of U.S. trading.
--Mylene Mangalindan in the San Francisco newsroom
(415) 912-2991/pkc
Story illustration: To chart Oracle's stock performance: ORCL US |
