Oracle Misses on Earnings as Investments Drag Down Quarterly Profit

Oracle reported fiscal third-quarter earnings on Thursday that trailed analysts’ expectations. The stock initially slid 6% in extended trading before rebounding. According to a statement, revenue increased 4% a year earlier. Net income declined 54% to $2.32 billion.

The analyst also added that the reported earning was $1.13 per share, but they expected it to be $1.18 per share. Net income dropped due to two investments. The company said profit was hurt by the tumbling share price of Oxford Nanopore gene-sequencing and an operating loss at Arm server chip maker Ampere Computing, a private company.

Oracle said they remain confident that our investments in these two cutting-edge technology companies will deliver solid returns for Oracle. The company’s short-term deferred revenue, at $7.87 billion, came in below the StreetAccount consensus of $8.01 billion.Supply shortages persist for , which sells hardware equipment for companies to deploy in data centers.CEO said they couldn’t meet every need as quickly as we would have liked. In the quarter, announced its intent to acquire Cerner, a software developer for managing health records, for $28.3 billion in cash.

Oracle expects $1.35 to $1.39 in adjusted earnings per share and 3% to 5% revenue growth in the fiscal fourth quarter. Analysts polled by Refinitiv had been looking for $1.38 per share and $11.76 billion in revenue, which works out to 4.8% revenue growth. The guidance does not include any contribution from Cerner, although the deal could close in the quarter. stock was down 12% so far in 2022. The S&P 500 index has dropped about 11% over the same period.