Oracle stock fell Friday, after reporting quarterly results that didn’t miss earnings estimates as the database software company underwent a major cloud transition and shaped a new business model. The inspiration (ORCLThe earnings report came out late on Thursday.
The company reported adjusted earnings of $1.13 per share on revenue of $10.5 billion. Analysts expected Oracle to report adjusted earnings of $1.18 per share, on revenue of $10.5 billion. Revenue was up 4% compared to the same quarter last year.
“In the third quarter, Oracle delivered consistent crypto revenue growth of more than 7% — the highest quarterly organic revenue growth since we began our transition to the cloud,” CEO Safra Katz said in written statements with oracle earnings statement.
Oracle Acquisition of Cerner
In December, Oracle announced that it would acquire the medical records company Cerner (CERN) through a View the full cash tender about $95 Share, or roughly $28.3 billion in the value of the stock. It’s Oracle’s largest ever acquisition and moves the database software giant deeper into the healthcare sector.
Oracle stock hit an all-time high on December 10, the day it announced Second quarter financial earnings that topped the ratings. Revenue jumped 6% to $10.4 billion, the best growth since 2018. But Oracle stock is down 16% since the Cerner deal was announced on Dec. 20.
“We are looking for management to better articulate their vision for Oracle in healthcare and to discuss the way forward,” Monness Crespi Hardt analyst Brian White said in a note to clients.
Oracle stock gains wiped out
“The gains in Oracle stock — which it saw after a solid fiscal second quarter realization — were further wiped out by the announcement of a large, poorly communicated acquisition that left investors confused and divested,” White wrote. It has a buy rating on Oracle stock and a target price of 126.
Over the past several years, Oracle has transitioned from a legacy business of licensing and maintaining on-premises database software. It is now a subscription-based software model that takes advantage of the advantages of cloud computing.
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