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Oracle blames dollar for earnings and revenue miss

Oracle blames dollar for earnings and revenue miss

Oracle pointed to the U.S. currency as it delivered quarterly earnings and revenue that fell short of analysts’ expectations on Wednesday. The company reported adjusted earnings of 78 cents on revenue of $10.71 billion. Wall Street expected Oracle to deliver fourth-quarter earnings per share of 86 cents per share on $10.92 billion in revenue, according to consensus estimates from Thomson Reuters.Oracle And Microsoft To Work Together On Cloud

The stock fell more than 7 percent in after-hours trading. The tech giant said its quarterly results were “significantly impacted by the strengthening of the U.S. dollar compared to foreign currencies.” In fact, the company said it’s total Q4 revenues (which were down about 5 percent) would have actually seen a 3 percent increase if not for the stronger dollar. In addition to announcing earnings, the company said its board had declared a quarterly cash dividend of 15 cents per share of outstanding common stock.

“This was an ugly print and speaks to the headwinds Oracle is seeing in the field as their legacy database business is seeing slowing growth,” Daniel Ives, an analyst at FBR Capital Markets, told Reuters. “While cloud has seen pockets of strength, overall the excuses we see out of Oracle have continued to frustrate the Street.” Oracle said it saw a 6 percent decrease in software and cloud revenues. Cloud software as a service (SaaS) and platform as a service (PaaS), however, saw 29 percent revenue growth (35 percent in constant currency) to $416 million.

“We sold an astonishing $426 million of new SaaS and PaaS annually recurring cloud subscription revenue in Q4,” Oracle CEO Safra Catz, said in the earnings release. “We expect our rapidly increasing cloud sales to quickly translate into significantly more revenue and profits for Oracle Corporation.” She added that the company expects that SaaS and PaaS revenue growth rate to jump to around 60 percent in constant currency in the new fiscal year.