Oracle says software and cloud revenue grew in fiscal 3rd quarter, and shares rise aftermarket

Published May 03, 2016

Shares of Oracle Corp. rose in aftermarket trading Tuesday after the company said its software and cloud businesses gained strength in the fiscal third quarter.

Oracle said its net income fell 3 percent to $2.5 billion, or 56 cents per share, in the quarter that ended on Feb. 28.

Excluding one-time items, Oracle said it earned 68 cents per share, matching Wall Street's estimate, according to Zacks Investment Research.

Revenue was nearly unchanged at $9.33 billion, below Wall Street's prediction of $9.45 billion.

The Redwood City, California-based company said the stronger U.S. dollar hurt its sales. A stronger dollar makes products more expensive overseas and dings the company when foreign revenue is translated back into the dollar.

Oracle said software and cloud revenue picked up, which countered a decline in hardware sales.

The company's stock picked up $1.46, or 3.4 percent, to $44.33 in aftermarket trading. Shares have dropped 4 percent in 2015, while the Standard & Poor's 500 index has risen almost 1 percent.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on ORCL at http://www.zacks.com/ap/ORCL

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Keywords: Oracle, Earnings Report

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