Oracle delivered a third quarter profit forecast which appears to have disappointed the cocaine nose jobs of Wall Street who took out the news on the outfit’s share price.
After chewing on laurel leaves and sitting on a tripod over a volcanic crack, Oracle forecast third-quarter profit of $9.33 billion to $9.61 billion. This is basically no growth and the outfit blamed a shift from licensing software to cloud-based subscriptions.
Analysts on average were expecting profits of $9.28 billion and a rather nice Christmas present from Oracle delivered to their offices.
FBR Capital Markets analyst Daniel Ives said that the results were softer than the Street and suggests there will be massive growth challenges ahead.
Oracle, like other established technology companies, has been moving its business to the cloud-based model, essentially providing services remotely via data centres rather than selling installed software.
In the second quarter revenue from the company’s cloud-computing software and platform service rose 34 percent to $484 million.
Total revenue fell 6.3 percent to $8.99 billion, missing analysts’ average estimate of $9.06 billion.
Oracle’s second-quarter net income fell to $2.2 billion from $2.5 billion a year earlier.