Oracle indicated it was making progress with its transformation to cloud computing and healthcare as the company reported quarterly results that beat estimates and exceeded the high end of its guidance. Oracle stock initially jumped Tuesday but reversed to close slightly lower.
The database software company said adjusted earnings were $1.21 a share on revenue of $12.3 billion. Analysts expected Oracle to report earnings of $1.17 a share on revenue of $11.95 billion, according to FactSet.
In constant currency, revenue jumped 25%. The results were for Oracle's fiscal second quarter ended Nov. 30. It reported quarterly results late Monday,
For the current quarter, Oracle expects revenue of about $12.4 billion. That's above analyst estimates of $12.2 billion.
Oracle stock, which had jumped 4.5% early Tuesday, closed at 80.56, down 0.9% on the stock market today
The strengthening of the U.S. dollar compared to foreign currencies had a significant impact on results in the quarter," according to the Oracle earnings release. "Without the impact of the U.S. dollar strengthening, adjusted earnings would have been 9 cents higher."
Oracle Stock: Investing Heavily In Cloud Computing
Total cloud revenue jumped 43% to $3.8 billion and was up 48% in constant currency, Oracle said.
Oracle is investing heavily to accelerate cloud revenue growth as it also moves to modernize health care information technology.
This was Oracle's second quarter with a financial contribution from medical records company Cerner. Oracle acquired Cerner for $28 billion, as part of the software company's deeper move into the health care sector. Cerner contributed $1.5 billion to total revenue.
"We are just beginning our mission to modernize health care information systems," Oracle Chairman Larry Ellison said in a written statement with the earnings release. "In the wake of the Covid pandemic, there is a worldwide sense of urgency to transform and improve national health care systems. The scale of this opportunity is unprecedented."
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