Oracle (ORCL) Stock Edges Up on Earnings

Oracle Corporation (NYSE: ORCL)

Oracle Corporation is having an incredible start to the day, and for good reason. The stock is gaining in pre-market trading as the result of a strong earnings report. Today, we’ll talk about the company’s earnings report, how the market reacted to the news, and what we can expect to see from ORCL moving forward. So, let’s get right to it…

ORCL Gains On Strong Earnings

As mentioned above, Oracle is having an incredibly strong start to the day today after releasing its earnings for the fourth fiscal quarter of the year 2016 after the closing bell yesterday. Here’s what we saw from the report that got everyone so excited…

  • Revenue – In terms of revenue, ORCL did incredibly well. During the fourth quarter, analysts expected that the company would generate revenue in the amount of $10.47 billion. However, the company actually produced revenue in the amount of $10.59 billion, coming in well ahead of expectations.
  • Earnings – When it comes to earnings per share, ORCL didn’t beat expectations, but it didn’t miss them either. During the fourth quarter, the company reported that it earned $0.81 per share. This figure came in directly in line with analyst expectations.
  • Sales – Oracle has been working hard to bring on new SaaS (Software as a Service) and PaaS (Platform as a Service) customers. The company reported that growth in these areas was overwhelmingly positive. During the fourth quarter, the company added more than 1,600 SaaS customers and more than 2,000 new PaaS customers to the books. This is another area where the company did incredibly well.

As you can see from the information above, ORCL definitely didn’t disappoint when it comes to Q4 results. Overall, the quarter was overwhelmingly positive. The data above was followed up by Exacutive Chairman and CTO, Larry Ellison. Here’s what Ellison had to say in a statement…

We expect that the SaaS and PaaS hyper-growth we experienced in FY16 will continue for the next few years… That gives us a fighting chance to be the first cloud company to reach $10 billion in SaaS and PaaS revenue.”

How The Market Reacted To The News

As investors, one of the first things that we learn when we get started in the market is that the news causes movements. Any time positive news is released with regard to a publicly traded company, we can expect to see gains in the value of the stock associated with that company. Adversely, negative news will lead to declines. The news that was released with regard to ORCL was overwhelmingly positive. As a result, we’re seeing strong movement surrounding the stock today. Currently (8:07), the stock is trading at $39.20 per share after a gain of $0.56 per share or 1.45% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly positive opinion of what we can expect to see from Oracle Corporation. The reality is that the company has worked hard to position itself as a leader in the cloud computing industry, and has done an incredibly job at achieving that goal. Sales growth is solid and earnings are headed upward. With a strong team, strong products, and strong management, it only makes sense that we will see strong growth moving forward!

What Do You Think?

Where do you think ORCL is headed moving forward and why? Let us know your opinion in the comments below!