Oracle Tops Quarterly Profit and Revenue And Eases Concerns About Coronavirus

Multinational computer technology corporation Oracle reported quarterly results on Thursday that revealed a profit and revenue beat.

For the third quarter, Oracle reported that revenue rose nearly 2% to $9.8 billion, beating analysts’ average estimate of $9.75 billion, according to IBES data from Refinitiv.

Net income dropped to $2.57 billion in the quarter ended Feb. 29, from $2.75 billion. But on a per share basis, it rose to 79 cents per share from 76 cents a year earlier.

On an adjusted basis, the company earned 97 cents per share, beating the 96 cents expectation.

According to the company it was growth in its cloud business that led to the beat. Oracle’s business software maker’s
cloud services and license support unit, which accounts for more than half of its revenue, saw a growth of 4% to $6.93 billion in the third quarter.

The company also assured that the deadly coronavirus would have a “minimal impact” on its fourth quarter revenue.

“We expect minimal impact from the virus in the quarter, given that much of the subscription revenue is already contracted,” said Chief Executive Officer Safra Catz on an earnings call with investors.

“It was the February quarter, so we didn’t see the full impact of coronavirus but it is encouraging to see that there doesn’t seem to have been a lot of impact so far,” said Michael Turits from brokerage Raymond James.

Shares were up 3% on the earnings report.

It was in February that the company announced it had added new data centers in five countries and said it had additional plans for 36 more locations by the end of the year.

Disclaimer: We have no position in Oracle Corporation (NYSE: ORCL) and have not been compensated for this article.