Software giant Oracle Corp. (ORCL) has solidly outperformed estimates for the 2nd time in as many quarters in fiscal 2011. Oracle posted non-GAAP EPS of 51 cents a share, easily beating the Zacks Consensus Estimate of 44 cents. Oracle's revenue jumped 47% year over year to $8.6 billion in the quarter (both GAAP and non-GAAP). The Zacks Consensus Estimate for revenue was $8.3 billion.
Oracle had forecast healthy growth in new software license sales, but the 21% gain outperformed the company guidance of 6-16%. New software license sales and product support brought in $3.7 billion in the quarter, up from $3.45 billion in the 1st quarter of fiscal 2011.
It has been nearly a year since Oracle purchased Sun Microsystems for $7.3 billion, and Q2 marks the 2nd operating with co-president Mark Hurd, formerly Hewlett-Packard's (HPQ) CEO. Last month, Oracle won $1.3 billion at trial from German competitor SAP (SAP) when it was decided that SAP had illegally downloaded millions of password-protected Oracle files.
So it had been an eventful quarter for Oracle, yet analysts remained reluctant to either upgrade or downgrade earnings estimates. The 44 cents per share expected was a penny higher than it was 90 days ago, even though one out of the 18 analysts covering Oracle had upwardly revised in the past week. Thinking back to Q1, the very same thing had happened -- analysts had stayed pat on earnings estimates for the most part, allowing the company to far exceed expectations.
Shares of Oracle had pulled back before the closing bell on Thursday by 22 cents per share, or 0.72%, but they immediately jumped 4% on the earnings news in the after-market. This again is a carbon-copy of what happened a quarter ago.
Oracle's impressive numbers for the quarter would indicate that the worry about IT suffering tougher times in the quarters ahead is somewhat unfounded, or at least not widespread enough to include the diversified tech giant. Tomorrow morning before the bell we will add much more detail regarding Oracle's earnings report.
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
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It has been nearly a year since Oracle purchased Sun Microsystems for $7.3 billion, and Q2 marks the 2nd operating with co-president Mark Hurd, formerly Hewlett-Packard's (HPQ) CEO. Last month, Oracle won $1.3 billion at trial from German competitor SAP (SAP) when it was decided that SAP had illegally downloaded millions of password-protected Oracle files.
So it had been an eventful quarter for Oracle, yet analysts remained reluctant to either upgrade or downgrade earnings estimates. The 44 cents per share expected was a penny higher than it was 90 days ago, even though one out of the 18 analysts covering Oracle had upwardly revised in the past week. Thinking back to Q1, the very same thing had happened -- analysts had stayed pat on earnings estimates for the most part, allowing the company to far exceed expectations.
Shares of Oracle had pulled back before the closing bell on Thursday by 22 cents per share, or 0.72%, but they immediately jumped 4% on the earnings news in the after-market. This again is a carbon-copy of what happened a quarter ago.
Oracle's impressive numbers for the quarter would indicate that the worry about IT suffering tougher times in the quarters ahead is somewhat unfounded, or at least not widespread enough to include the diversified tech giant. Tomorrow morning before the bell we will add much more detail regarding Oracle's earnings report.
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
SAP AG ADR (SAP): Free Stock Analysis Report
Zacks Investment Research
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