Oracle shares plunge five percent after positive earnings report for 4 quarter and 2021 year

Oracle shares plunge five percent after positive earnings report for 4 quarter and 2021 year

Oracle Software Developer (NYSE: ORCL) reported for the 4th quarter and 2021 fiscal year. Key financial indicators for the 4th quarter:

  • revenue increased by eight percent, up to 11.2 billion dollars;
  • sales in the cloud services sector added eight percent, and in the sector of cloudy and local licenses - nine percent;
  • operating profit increased by five percent, up to 4.5 billion;
  • pure profit increased by twenty-nine percent, up to 4 billion.

And oh, so ended for the company's 2021 fiscal year:

  • revenue increased by four percent, up to $40.5 billion;
  • cloudy and licensed segments added five percent each;
  • operating profit increased by nine percent, up to 15.2 billion;
  • pure profit increased by thirty-six percent, up to 13.7 billion.

Oracle CEO Safra Katz named quarterly figures, which turned out to be higher than expected, outstanding: “‎The upgrade level of our Fusion and NetSuite cloud solutions is even higher. In the 3rd and 4th districts, Fusion ERP increased by 30 and forty six percent, Fusion HCM — на 23 and thirty five percent, NetSuite — на 24 and twenty six percent. Fusion and NetSuite are the world's largest cloud ERP systems. Revenue from our second-generation IaaS marketplace, including an autonomous information base, increased by over one hundred percent. The accelerating growth of our applications and cloudy infrastructure enabled a twenty-one percent increase in earnings per share in fiscal 2021. Earnings per share grows at a double-digit pace for the 4th year in a row”.

According to reports Apps Run The World, in 2020, Oracle was the leading developer of cloudy ERP applications and held 12,2 % the whole market. ERP (enterprise resource planning) — applications, that help companies manage their accounting, procurement, projects, risks and supply chains.

Despite a positive report, Oracle shares fell 5%, to 77,8 $, after the close of the main trading session. Investors didn't like it., that the forecasts for the company's adjusted earnings were below analysts' expectations. Oracle Plans to Nearly Double Cloud Capex in Fiscal Year 2022, up to 4 billion dollars. This will reduce the size of future profits..

Oracle stock has doubled the S broad market index since the beginning of the year&P 500 — 28 against 15%. Oracle Securities Analyst Consensus Next 12 months — 73 $.

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Oracle shares fell 5% after a positive report for 4 quarter and 2021 year

Oracle Q4 Revenue, million dollars

2020 2021 The change
Cloud services 6845 7389 8%
Cloud and local licenses 1959 2144 9%
Hardware 901 882 −2%
Services 735 812 11%
Total 10 440 11 227 8%

Cloud services

2020
6845

2021
7389

The change
8%

Cloud and local licenses

2020
1959

2021
2144

The change
9%

Hardware

2020
901

2021
882

The change
−2%

Services

2020
735

2021
812

The change
11%

Total

2020
10 440

2021
11 227

The change
8%

Oracle revenue for the year, million dollars

2020 2021 The change
Cloud services 27 392 28 700 5%
Cloud and local licenses 5127 5399 5%
Hardware 3443 3359 −2%
Services 3106 3021 −3%
Total 39 068 40 479 4%

Cloud services

2020
27 392

2021
28 700

The change
5%

Cloud and local licenses

2020
5127

2021
5399

The change
5%

Hardware

2020
3443

2021
3359

The change
−2%

Services

2020
3106

2021
3021

The change
−3%

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