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Oracle quarterly profit beats estimates; shares rise

Oracle quarterly profit beats estimates; shares rise
FILE PHOTO: The Oracle logo is shown on an office building in Irvine, California, U.S. June 28, 2018. REUTERS/Mike Blake/File Photo -
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MIKE BLAKE(Reuters)
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(Reuters) – Oracle Corp beat fourth-quarter revenue and profit estimates on Wednesday, as the business software maker benefited from demand for its on-premise IT, cloud services and license support businesses, sending its shares up as much as 7% in extended trading.

Revenue from its cloud license and on-premise license businesses rose 12% to $2.52 billion (£1.99 billion) from $2.25 billion, above analysts’ estimates of $2.31 billion, according to IBES data from Refinitiv.

Revenue from the cloud services and license support business, its biggest, rose marginally to $6.80 billion. Analysts on average had expected revenue of $6.79 billion.

“Our high-margin Fusion and NetSuite cloud applications businesses are growing rapidly, while we downsize our low-margin legacy hardware business,” said Chief Executive Officer Safra Catz.

The company’s net income rose to $3.74 billion, or $1.07 per share, in the fourth quarter ended May 31, from $3.28 billion, or 79 cents per share, a year earlier.

Total revenue rose 1% to $11.14 billion, above analysts’ expectation of $10.93 billion.

Excluding items, the company earned $1.16 per share compared to estimates of $1.07 per share.

(Reporting by Sayanti Chakraborty in Bengaluru; Editing by Shounak Dasgupta)

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