Oracle Corporation Q1 Earnings: Cloud Push

Enterprise software and computer hardware stock Oracle Corporation (NYSE: ORCL) reported Q1 2018 earnings after the Thursday market close with shares falling in premarket trading as the Company continues to makeinvestments in building out its cloud-computing infrastructure. Total Revenues rose 7% to $9.2 billion asCloud plus On-Premise Software revenues rose 9% to $7.4 billion,Cloud Software as a Service (SaaS) revenues rose 62% to $1.1 billion andCloud Platform as a Service (PaaS) plus Infrastructure as a Service (IaaS) revenues were up 28% to $400 million. Total Cloud revenues were up 51% to $1.5 billion and short-term deferred revenues were up 9% compared with a year ago to $10.3 billion. GAAP Net Income was up 21% to $2.2 billion while non-GAAP Net Income was up 14% to $2.7 billion.

CEO Safra Catz commented:

The sustained hyper-growth in our multi-billion dollar cloud business continues to drive Oracles overall revenue and earnings higher and higher. In Q1, total revenues were up 7%, GAAP EPS was up 19%, and non-GAAP EPS was up 12%. Oracle is off to a very, very strong start in FY18.

CEO Mark Hurd added:

With SaaS revenue up 62%, our cloud applications business continues to grow more than twice as fast as ERP is our largest and most important cloud applications business. We now have about 5,000 Fusion ERP customers plus 12,000 NetSuite ERP customers in the Oracle Cloud. Thats 30 times more ERP customers than Workday.

Chairman and CTO Larry Ellison added:

In a couple of weeks, we will announce the worlds first fully autonomous database cloud service. Based on machine learning, the latest version of Oracle is a totally automated self-driving system that does not require human beings to manage or tune the database. Using AI to eliminate most sources of human error enables Oracle to offer database SLAs that guarantee 99.995% reliability while charging much less than AWS.

A technical chart for Oracle Corporation shows shares almost breaking through a $52 level resistance level in June and finally breaking through a few trading days ago:

A long term performance chart shows Oracle Corporation and SAP SE (NYSE: SAP) giving a similar performance while Microsoft Corporation (NASDAQ: MSFT) and, inc (NYSE: CRM) have performed even better and International Business Machines Corp (NYSE: IBM) has underperformed:

Finally, here is a quick recap of large cap Oracle Corporations recent earnings history along with EPS estimate trends from the Yahoo! Finance analyst estimates page going into the current earnings report:

Earnings History11/29/20162/27/20175/30/20178/30/2017
EPS Est. 0.6 0.62 0.78 0.6
EPS Actual 0.61 0.69 0.89 0.62
Difference 0.01 0.07 0.11 0.02
Surprise % 1.70% 11.30% 14.10% 3.30%
EPS TrendCurrent Qtr. (Nov 2017)Next Qtr. (Feb 2018)Current Year (2018)Next Year (2019)
Current Estimate 0.68 0.74 2.94 3.19
7 Days Ago 0.69 0.74 2.95 3.19
30 Days Ago 0.69 0.74 2.96 3.2
60 Days Ago 0.69 0.74 2.96 3.19
90 Days Ago 0.67 0.72 2.83 3.08

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