- Oracle climbed as much as 7% in pre-market trading on Thursday morning after the firm reported better-than-expected earnings for the fourth quarter.
- The cloud and database company is set to open at a record high, which it last hit in April at $US55.41 a share.
- Oracle’s strong fourth-quarter results were thanks to a boost in its cloud applications business.
- Watch Oracle trade live here.
Oracle jumped by as much as 7% before the opening bell on Thursday and was on track to open at a record high after beating expectations for its fourth-quarter earnings.
The company generated $US1.16 in earnings per share, outperforming analysts’ expectation of $US1.07. Fourth-quarter revenues were $US11.1 billion, beating Wall Street’s estimate of $US10.93 billion. Revenues grew about 1% from the same quarter last year.
“These strong results extend Oracle’s already commanding lead in worldwide cloud ERP,” Mark Hurd, the co-chief executive officer of Oracle, said in a press release on Wednesday. “Our cloud applications businesses are growing faster than our competitors.”
The company attributed its strong fourth-quarter results to growth in its cloud application business, which includes a number of cloud services that help other companies run their businesses. Cloud Services and Licence support revenues, Oracle’s largest business segment, accounted for $US6.8 billion in revenue this quarter.
“Our high-margin Fusion and NetSuite cloud applications businesses are growing rapidly while we downsize our low-margin legacy hardware business.” Safra Catz, the co-CEO, said in a press release.
Total revenues in 2019 reached $US39.5 billion, with its Cloud Services and Licence segment support generating $US26.7 billion.
The company’s board of directors also declared a cash dividend of $US0.24 per share.
Oracle is up more than 24% so far this year.