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Oracle shares have grown due to the strong company report

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Oracle shares have grown due to the strong company report
June 22
08:00 2017

The American company Oracle has submitted a report of overcoming the psychological milestone of $ 200 billion in the assessment of its own capitalization. The company earns mainly by developing corporate financial software.

Such impressive figures are due to the strong report both for the fiscal year of 2017 in general and the fourth quarter in particular.

The company has made significant efforts in order to develop cloud services that allowed the profits and revenues of Oracle to exceed the market forecasts.

A press release on the results of the closing of the financial year by the company informs about an increase in net profit for the last fiscal quarter by 15%. In absolute terms, the profit has amounted to $ 3.23 billion ($ 0.76 per share). For the same period last year, the figures looked like this: profit -$ 2.81 billion, in terms of one share – $ 0.66.

The average profit forecast, excluding one-time factors, was $ 0.78 per share; the real profit has amounted to $ 0.89 per share. Analysts also predicted an increase in revenue to $ 10.46 billion. The real revenue has exceeded the forecasted by experts value and is equal to $ 10.89 billion.

If we go through the specific departments of the company, then the department that provides cloud services turned out to be very successful. The proceeds have increased to a record $ 1.36 billion, showing the growth of 58%.

In terms of revenue, the division of PaaS and IaaS has grown by 40%, the SaaS service division has shown the revenue growth of 67%. According to the information provided by the portal MarketWatch, Oracle Corporation has shown an increase in annual profit by 5%, revenue – by 2%. In absolute terms, the annual profit is equal to $ 9.34 billion, revenue – $ 37.73 billion. This is the first growth in the last three years.

Oracle CEO Larry Ellison is setting an ambitious goal for the near future: to become Number one in the sphere of cloud software developing by beating the main competitor

While reporting, Oracle shares have risen by 1.1%; the share price has crossed the fifty-dollar line during the bidding, which is an absolute record for these securities.
Analysts expect the further growth of Oracle shares. The trend will go on for some time.

The material was prepared with the participation of  Andrey Majorov,
a leading analyst of the brokerage company CT Trade

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