REDWOOD SHORES (dpa-AFX) - Shares of Oracle Corp. (ORCL) slipped over 5% in extended hours on Thursday after the business software giant reported a third-quarter profit that missed Wall Street estimates. However, revenues for the quarter were in line with analysts expectations.
Redwood Shores, California-based Oracle reported third-quarter profit of $2.32 billion or $0.84 per share, down from $5.02 billion or $1.68 per share last year.
On an adjusted basis, earnings for the quarter were $3.10 billion or $1.13 per share for the period, down from $3.49 billion or $1.16 per share last year. Analysts polled by Thomson Reuters expected earnings of $1.18 per share. Analysts' estimates typically exclude special items.
Revenues for the quarter rose 4% to $10.51 billion from $10.09 billion last year. Analysts had a consensus revenue estimate of $10.51 billion.
Cloud services and license support revenues rose to $7.64 billion from $7.25 billion, while Cloud license and on-premise license revenues rose to $1.29 billion from $1.28. Hardware revenues dropped to $798 million from $820 million last year, while services rose to $789 million from $737 million.
'In Q3, Oracle delivered over 7% constant currency revenue growth-our highest quarterly organic revenue growth rate since we began our transition to the cloud,' said Oracle CEO, Safra Catz. 'This strong top line growth was coupled with a solid non-GAAP constant currency operating profit growth of 4%, but the big story is that our overall revenue growth is being driven by both our rapidly growing Cloud Infrastructure and Cloud Applications businesses.
ORCL closed Thursday's trading at $76.65, up $0.55 or 0.72%, on the Nasdaq. The stock, however, slipped $4.38 or 5.71%, in the after-hours trading.
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