According to the latest reports, Oracle Corp. stock slipped on Monday evening following the announcement of company’s quarterly results and the outlook given looked below par.
On Monday evening software giant’s co-CEO Safra Catz revealed the fourth-quarter outlook in a conference call.
That outlook dropped well short of analysts’ predictions in total cloud sales, after the last three month period cloud-software growth was also less than predicted, causing concerns that Oracle’s cloud transition is declining.
The software company’s stock initially dropped 3.7% after market closed, and went as far as 6% down.
During the announcement Oracle revealed a third-quarter net loss of $4.02 billion, or 98 cents a share, in contrast with a profit of $2.24 billion, or 53 cents a share, year over year. Apart from $6.9 billion charge from the U.S. tax and other costs, adjusted earnings came down to 83 cents a share. Analysts in the meantime were predicting around 72 cents a share.
Company’s Revenue surged to $9.77 billion from $9.21 billion year over year. In the meantime adjusted revenue was $9.776 billion, just under $9.781 billion predicted by the analysts.
The company posted a 12% rise in Software-as-a-Service sales to $1.15 billion, but that fell short of the analysts forecast of $1.18 billion.
Looking ahead for the fourth-quarter cloud outlook, Oracle said it is expecting growth in total cloud sales of 19% to 23% from the same period last year, however Wall street was expecting growth of more than 27%.
Moreover company’s new software license sales surged 14% to $1.39 billion, was also less than the $1.42 billion predicted by the analysts.