Oracle stock rises as earnings and revenue beat, but profit forecast comes in slightly short

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Oracle stock rises as earnings and revenue beat, but profit forecast comes in slightly short
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Oracle Corp. topped Wall Street’s expectations for profit and revenue in its most recent quarter, though the software company is still expected to issue a forecast that could be more fraught.

Oracle Corp. topped Wall Street’s expectations for profit and revenue in its most recent quarter, but the software company’s earnings guidance came in slightly lower than Wall Street expected.

For the fiscal third quarter, Chief Executive Safra Catz in a conference call later Monday said revenue should increase 17% to 19% from last year, suggesting a quarterly total of roughly $12.3 billion to $12.5 billion, and guided for adjusted earnings of $1.17 a share to $1.21 a share. Analysts on average were expecting adjusted earnings of $1.23 a share on sales of $12.21 billion for the fiscal third quarter, according to FactSet.

“We believe the darkest days of this downturn are ahead of us,” Monness Crespi Hardt analyst Brian J. White wrote in a preview of Oracle results, later adding that “results across Big Tech, the leading public clouds, and the enterprise software complex paint an increasingly concerning picture for the software world heading into 2023.”

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