Earnings Review and Free Research Report: Oracle’s Q1 Results Rode on Cloud Business; Outperformed Projections

LONDON, UK / ACCESSWIRE / October 2, 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 financial results on September 14, 2017, for the first quarter of the fiscal year 2018 (Q1 FY18). The Redwood Shores, California-based Company’s quarterly non-GAAP total revenues and diluted earnings per share (EPS) grew 7% and 12% y-o-y, respectively; beating market consensus estimates. 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:

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Earnings Reviewed

In Q1 FY18, Oracle reported GAAP total revenues of $9.19 billion compared to $8.60 billion recorded at the end of Q1 FY17. The Company’s non-GAAP total revenues increased to $9.21 billion during Q1 FY18 from $8.61 billion in Q1 FY17. The non-GAAP total revenue figures outperformed market expectations of $9.03 billion.

The software developer reported GAAP net income of $2.21 billion, or $0.52 per diluted share, for Q1 FY18 versus $1.83 billion, or $0.43 per diluted share, in Q1 FY17. Moreover, the Company’s non-GAAP net income came in at $2.66 billion, or $0.62 per diluted share, for Q1 FY18 compared to $2.34 billion, or $0.55 per diluted share, in the last year’s same quarter. The Company’s non-GAAP diluted EPS also outperformed market earnings estimates of $0.60 per diluted share. The Company attributed the growth in the multi-billion dollar cloud business to being the driving force behind the overall improvement in the revenues and higher earnings during the reported quarter.

Operating Metrics

During the three months ended August 31, 2017, the Company’s GAAP total operating expenses were $6.37 billion compared to $5.95 billion in Q1 FY17. In Q1 FY18, non-GAAP total operating expenses came in at $5.43 billion compared to $5.21 billion in Q1 FY17. The Company’s GAAP operating income stood at $2.82 billion, or 31% of GAAP total revenues, for Q1 FY18 versus $2.641 billion, or 31% of GAAP total revenues, in Q1 FY17. Moreover, the Company’s non-GAAP operating income increased to $3.78 billion, or 41% of non-GAAP total revenues, during Q1 FY18 from $3.40 billion, or 39% of non-GAAP total revenues, in the previous year’s comparable quarter.

Segment Performance

During Q1 FY18, the Cloud segment’s total non-GAAP revenues surged 51% to $1.49 billion y-o-y, from $986 million in Q1 FY17. The Company’s On-Premise Software segment’s total revenues rose 2% to $5.92 billion in Q1 FY18 from $5.82 billion in Q1 FY17. Total services revenues grew 6% to $860 million in Q1 FY18 from $808 million in Q1 FY17. Meanwhile, total hardware revenues fell 5% to $943 million y-o-y in Q1 FY18 from $996 million in Q1 FY17.

Geographical Contribution

In Q1 FY18, the Americas, the largest market for Oracle, generated revenues of $5.17 billion, up 7% from $4.82 billion in Q1 FY17. Revenues from the Asia/Pacific region was $1.48 billion in Q1 FY18, rising 8% from $1.37 billion in the prior year’s corresponding quarter. Furthermore, revenues from Europe, the Middle-East & Africa regions grew 5% to $2.54 billion in Q1 FY18 from $2.41 billion in Q1 FY17.

Cash Flow and Balance Sheet

For the three months ended August 31, 2017, Oracle generated $6.57 billion in cash from operations compared to $5.88 billion at the end of the three-quarters in the year-ago period. The Company had cash and cash equivalents balance of $21.32 billion as on August 31, 2017, compared to $21.78 billion at the close of books on May 31, 2017.

Dividend and Share Repurchases

In its earnings press release, Oracle’s Board of Directors announced a quarterly dividend of $0.19 per share of outstanding common stock. The dividend is payable on October 11, 2017, to shareholders of record at the close of business on October 25, 2017.

During the reported quarter, Oracle repurchased 10.2 million shares for a total of $500 million. Furthermore, in the last 12 months, the Company repurchased a total of 46.6 million shares for a total of $2 billion and paid out dividends of $2.8 billion.

Stock Performance

On Friday, September 29, 2017, the stock closed the trading session at $48.35, marginally climbing 0.56% from its previous closing price of $48.08. A total volume of 44.86 million shares have exchanged hands, which was higher than the 3-month average volume of 12.90 million shares. Oracle’s stock price rallied 8.38% in the past six months and 23.59% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 25.75%. The stock is trading at a PE ratio of 21.08 and has a dividend yield of 1.57%. At Friday’s closing price, the stock’s net capitalization stands at $200.64 billion.

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