GoKawiilThe logo of the software and hardware manufacturer Oracle can be seen at the company's German headquarters in Munich on Sept. 25, 2023.
Oracle shares moved 4% higher in extended trading on Thursday after the software vendor issued stronger-than-expected quarterly results.
Here's how the company performed relative to LSEG consensus:
Earnings per share: $1.92 adjusted vs. $1.74 expected
$1.92 adjusted vs. $1.74 expected Revenue: $19.35 billion vs. $19.14 billion expected
Oracle's revenue grew almost 30% year over year in the fiscal first quarter, which ended on Aug. 31, according to a statement. Net income of $4.68 billion, or $1.56 per share, was up from $2.93 billion, or $1.01 per share, a year ago. Adjusted earnings exclude stock-based compensation expense.
For the fiscal second quarter, Oracle called for $1.85 to $1.93 in adjusted earnings per share, with revenue growth between 30% and 34%. Analysts surveyed by LSEG were looking for $1.89 in adjusted earnings per share, with $21.20 billion in revenue, which would indicate 32% growth.
Much of Oracle's expansion is tied to data center growth, as the company tries to become a bigger player in the artificial intelligence boom. But Oracle has a weaker cash position than hyperscaler competitors and a lower credit rating. The company now sits on $125 billion in debt, and negative free cash flow came in at $5.4 billion, compared with negative $362 million a year earlier.
Capital expenditures in the fiscal first quarter soared to $28.50 billion from $8.50 billion last year. During the quarter, the company said it delivered 850 megawatts of data center capacity.
Oracle shares have dropped 22% this year as of Thursday's close, while the S&P 500 has gained roughly 11%.
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