OK, this is looking somewhat predictable.
Oracle has beat earnings estimates in seven of the past eight quarters, according to Forbes, with Q1 fiscal 2018 being its only miss. The company either met or slightly beat top-line expectations in six of the last eight quarters.
Oracle earlier this week reported US$9.20 billion in revenue, or $0.03 per share, against consensus estimates in the $9.24 to $9.29 range. In other words, it missed its number.
How concerning is this? Excuse me while I yawn. It’s important all right, but no reason to get crazy.
Still, some representatives of the widows and orphans who own the stock went into a tizzy, and some might have needed smelling salts or a stiff drink. By the way, if you’re wondering where the finance community ever got the widows and orphans meme, I’ve traced it back to Moby Dick. Seems whaling expeditions were once joint stock enterprises too.
At any rate, what does this miss mean? Many people are concerned that Oracle isn’t moving its customers to the cloud fast enough. The fact that the company made the results on that part of the business hard to get has gotten some people worried. I get that, but I don’t think anything awful is going on.
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