Shares of computer technology company, Oracle Corporation (ORCL) dropped on Thursday after earnings miss.
The Redwood City, CA based company reported third quarter earnings of $2.5 billion, or 52 cents per share, compared to $2.5 billion, or 49 cents per share last year. Adjusted earnings were $3.1 billion, or 65 cents per share, up from $3.1 billion, or 62 cents per share last year. On average, Wall Street analysts expected to see earnings of 66 cents per share.
Revenue for the quarter was $8.96 billion, down -1% from $9.04 billion. Adjusted revenue also dropped by -1% to $8.97 billion, from $9.06 billion last year. Analysts expected the company to report quarterly revenue of $9.38 billion.
This is Oracle largest earnings miss since the November quarter in 2011, as the company continues to struggle with its hardware business as competition grows.
Although analysts expect to see fourth quarter earnings in line with estimates, investors remain focused on the current earnings miss as shares dropped nearly -8% during Thursday’s premarket.
Revenue for software licence updates and product support rose 7% in the third quarter to $4.3 billion, while service revenue dropped by -8% to $1 billion. Hardware systems revenue also declined by -16% to $1.2 billion.
Oracle shares were down -$2.80, or -7.84% during premarket trading Thursday. The stock has increased 20% in the past year.
The Bottom Line
Shares of Oracle Corporation (ORCL) have a 0.67% yield, based on Wednesday’s closing price of $35.76.
Oracle Corporation (ORCL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.