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 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.