OracleShares tumbled as much as 3% in after-hours trading on Monday, and the latest results showed that the company's first-quarter revenue fell short of market expectations.
Oracle Corp's first-quarter adjusted earnings per share were $1.03 per share, with market expectations of 97 cents, while revenue rose 4 per cent year-on-year to $9.73 billion, compared with an expected $9.77 billion, compared with an 8 per cent increase in the previous quarter, according to the results.
With regard to earnings guidance, Safra Catz, chief executive of Oracle Corp, said the company expected second-quarter revenue to grow 3 to 5 per cent, with earnings per share of $1.09 to $1.13. The market expects second-quarter adjusted earnings per share of $1.08 and revenue growth of nearly 5 per cent to $10.25 billion.
Oracle Corp's largest business unit, cloud services and licensing support, generated revenue of $7.37 billion in the first quarter, up 6%, but lower than market expectations of $7.41 billion; cloud licensing and local licensing contributed $813 million in revenue, down 8%. Lower than market expectations of $859.7 million; hardware revenue of $763 million, down 6%, lower than market expectations of $778.5 million.
Oracle Corp raised his capital expenditure to more than $1 billion in the first quarter, compared with $436 million a year earlier.
In the quarter, Oracle Corp announced a support incentive program to encourage customers to adopt their public cloud services, and Standard & Poor's Global Ratings downgraded Oracle Corp and his debt to BBB+.
Oracle Corp's shares have risen 37 per cent since the start of the year, while the s & p is up about 19 per cent over the same period.