Oracle Stock (ORCL): Why The Price Jumped Today

By Amit Chowdhry ● Dec 10, 2021
  • The stock price of Oracle Corporation (NYSE: ORCL) increased by over 13% pre-market today. This is why it happened.

The stock price of Oracle Corporation (NYSE: ORCL) increased by over 13% pre-market today. Investors are responding positively to the company’s fiscal 2022 Q2 results.

These are the highlights:

— Total quarterly revenues were up 6% year-over-year to $10.4 billion. 

— Cloud services and license support revenues were up 6% to $7.6 billion. 

— Cloud license and on-premise license revenues were up 13% to $1.2 billion.

— Oracle’s Q2 GAAP results were adversely impacted by the payment of a judgment related to a ten-year-old dispute surrounding former CEO Mark Hurd’s employment. That payment resulted in a Q2 GAAP operating loss of $824 million and a loss per share of $0.46. 

— Q2 Non-GAAP operating income was up 6% to $4.9 billion and earnings per share was up 14% to $1.21.

— Short-term deferred revenues were $7.9 billion. Operating cash flow was $10.3 billion during the trailing twelve months.

— The board of directors increased the authorization for share repurchases by $10 billion. 

— The board of directors also declared a quarterly cash dividend of $0.32 per share of outstanding common stock. This dividend will be paid to stockholders of record as of the close of business on January 7, 2022, with a payment date of January 19, 2022.

KEY QUOTES:

“Oracle’s Q2 Non-GAAP earnings per share was up 14% to $1.21—beating guidance by $0.10. Constant currency revenue beat guidance by $200 million. These strong results are being driven by the 22% growth of our infrastructure and applications cloud businesses which are approaching $11 billion in annualized revenue. We now have 8,500 Fusion ERP customers with revenue growing 35%, 28,400 NetSuite ERP customers with revenue growing 29%, and our Gen2 infrastructure businesses are growing even faster—and accelerating.”

— Oracle CEO Safra Catz

“Oracle’s Autonomous Database and new MySQL Database with HeatWave are the world’s two highest-performance databases. Because of their extreme high performance, both products present huge growth opportunities for our cloud infrastructure business. Oracle database on-premise customers are choosing our Autonomous Database as they move to the public cloud and our unique Cloud@Customer service. Amazon Aurora customers are discovering that moving to MySQL with HeatWave can increase their performance by more than ten-times—with a corresponding reduction in cost. These two databases will sustain Oracle’s database market and technology leadership for years to come.”

— Oracle Chairman and CTO Larry Ellison

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.