alyadar, orcl sounds similar to csco. i m njoying small steady move in tech w. good valuations and Larry and John both are saying they are enjoying this global growth like never before
This qurter is the weakest of all qurter so things will only get better from here on. . Cant belive this stock has forward pe of 15?! Ok so here is the guidance..and conf call.
Oracle Q1 Earnings Rise, Top Estimate
(RTTNews) - Oracle Corp. (ORCL) said Thursday after the markets closed that
first quarter earnings rose from last year, boosted by demand for its core
database software and acquisitions of former rivals like Siebel Systems and
PeopleSoft as well as other small software firms over the last few years. The
company's quarterly earnings per share, excluding items, beat analysts'
estimate by a penny.
The world's largest enterprise software company reported GAAP net income for
the first quarter of $840 million or $0.16 per share, compared to $670 million
or $0.13 per share for the year-ago quarter and $1.6 billion or $0.31 per share
for the previous sequential quarter.
Excluding acquisition costs, employee stock options expense, amortization of
intangible assets and other items, non-GAAP net income for the first quarter
was $1.2 billion or $0.22 per share, compared to $931 million or $0.18 per
share in the prior year quarter and $1.9 billion or $0.37 per share in the
prior quarter.
On average, 26 analysts polled by First Call / Thomson Financial expected the
company to earn $0.21 per share for the first quarter.
This marked the seventh consecutive quarter in which Oracle's earnings has
surged by at least 20%, which is part of the company's strategy to deliver
growth through acquisitions.
GAAP operating margin for the first quarter was 27%, compared to 26% in the
first quarter of last year and 39% in the fourth quarter.
Non-GAAP operating margin for the first quarter was 37%, compared to 36% in
the first quarter of last year and 46% in the fourth quarter.
Redwood Shores, California-based Oracle said total GAAP revenues for the first
quarter increased 26% to $4.53 billion from $3.59 billion a year ago, while
non-GAAP revenue rose 25% to $4.59 billion from $3.66 billion last year.
Sequentially, first quarter GAAP revenue declined 22.3%, while non-GAAP revenue
fell 21.9%. Twenty-seven analysts had consensus revenue estimate of $4.34
billion for the company's first quarter.
"We reported new software license revenues up 35%, the strongest growth of any
quarter in ten years," said Oracle President and CFO, Safra Catz.
Total GAAP software revenues for the first quarter surged 26% year over year
to $3.5 billion. GAAP new software licenses revenue jumped 35% year over year
to $1.1 billion, with GAAP database and middleware new license revenues up 23%
and GAAP applications new license revenues up 65%. GAAP services revenue for
the quarter rose 25% from last year to $1.1 billion.
GAAP revenues from the Americas grew to $2.4 billion in the first quarter from
$2.0 billion a year ago, while Europe, Middle East & Africa revenue increased
to $1.5 billion from $1.1 billion last year and Asia Pacific revenue rose to
$624 million from $495 million a year ago.
"We continue to take applications market share from SAP," said Oracle
President, Charles Phillips. "In Q1 Oracle's applications new license sales
grew 65% compared to SAP's new license sales growth rate of 18% in their most
recently completed quarter."
Oracle CEO Larry Ellison noted that the company has already taken the number
one position in database software from IBM and that if it continues to grow its
middleware software business at the same rate as in this quarter, it will
challenge IBM for
the number one position in middleware by the end of this year.
***** Guidance
During a conference call with analysts, Oracle CFO Safra Catz said the company
expects GAAP earnings of $0.20 to $0.21 per share and non-GAAP earnings of
$0.26 to $0.27 per share for the second quarter. The company forecast second
quarter revenue to grow 19% to 21% from a year ago, with new software license
revenue increasing 15% to 25%. Analysts currently expect the company to earn
$0.26 per share on revenue of $4.88 billion for the second quarter.
Oracle continues to be successful in its strategy of acquisition-led growth.
Since the end of 2004, Oracle has spent more than $25 billion on more than 30
acquisitions. In January 2005, the company completed its $11.1 billion purchase
of PeopleSoft after a prolonged takeover battle. Besides PeopleSoft, Oracle has
also swallowed up Siebel Systems Inc. for $6.1 billion. Some other deals
included MetaSolv Software Inc., Stellent Inc.
In April, the company completed its acquisition of business-intelligence
software maker Hyperion Solutions Corp. for $3.3 billion.
In May, Oracle agreed to buy product lifecycle management software maker Agile
Software Corp. for about $495 million. In July, Agile's shareholders approved
the deal. Approval of the merger agreement by Agile's stockholders satisfies
one of the conditions to the completion of the merger. All government
regulatory approvals, both U.S. and foreign, required to consummate the merger
have been obtained.
In July, Oracle agreed to buy identity theft and fraud prevention software
maker Bharosa Inc. for an undisclosed sum.
Earlier this month, Oracle signed a deal to buy Netsure Telecom Ltd., a
provider of network intelligence, analytics and network data integrity
software. The deal is expected to close in late September.
Among the company's rivals, SAP AG (SAP) in July reported an 8% growth in
second quarter earnings, driven by a 16% upside in revenues from software and
software related services division, together with a positive impact from
effective tax rate.
In terms of stock performance, Oracle shares have gained 16.23% in the last
one year, compared to a 15.38% gain by the S&P 500 index. Oracle shares trade
at a price-to-earnings ratio of 15.7 times 2009 estimates, compared to
Microsoft's 14.57 times and IBM's 14.77 times.
Oracle shares, which are trading in the range of $15.97 to $21.13 over the
last year, closed Thursday's regular trading session at $21.04, up 20 cents but
lost 26 cents or 1.24% in after hours trading. |
