Looks like Oracle missed on their earnings today with a poor forecast. They're down pretty hard in AH. Intel down slightly.
SAN FRANCISCO (MarketWatch) -- Oracle Corp. reported a surprising decline in revenues for its third fiscal quarter on Wednesday afternoon, along with a disappointing forecast that sent its shares sliding in after-hours trades.
Oracle (ORCL) shares were down more than 8% after the corporate software giant issued its forecast on a conference call.
If the drop holds during Friday's regular session, it would be the worst decline for the stock since Dec. 21, 2011 , when the company also surprised investors with a miss. The stock fell nearly 12% on that day.
For the recent period, total revenue slipped by 1%, and Oracle said revenue from new software licenses and cloud subscriptions, a closely watched category, also fell during the period, missing its own forecast.
On the call, Oracle co-president Safra Catz said part of the issue stemmed from a "lack of urgency" among the sales force, causing some deals to slip into the following period.
"Since we've been adding literally thousands of new sales reps around the world, the problem was largely sales execution, especially with the new reps as they ran out of runway in Q3," she said.
Oracle added more than 4,000 sales reps over the last 18 months, co-president Mark Hurd said on the call. He noted that the company has seen "material growth" in its deal pipeline, "but Q3 conversion rates were below what we expected while our actual win rate went up."
For the period ended Feb. 28 , net income was $2.5 billion , or 52 cents per share, compared with net income of $2.5 billion , or 49 cents per share, for the same period last year.
Adjusted earnings came in at $3.1 billion , or 65 cents per share on a non-GAAP basis. Oracle said in a statement that adjusted EPS would have been a penny higher "without the impact of the U.S. dollar strengthening compared with foreign currencies."
Total revenues fell by 1% to $9 billion during the quarter.
Analysts were expecting adjusted earnings of 66 cents per share on revenue of $9.37 billion , according to consensus estimates from FactSet.
New software licenses and cloud software subscriptions revenues were down 2% to $2.3 billion -- missing the company's prior forecast for a gain in the 3%-13% range. Hardware sales slid by 23% for the period; Oracle had previously forecast the unit to be flat to down 10% for the quarter.
On the call, Oracle said it expects total revenue in the current quarter to be down by 1% to up 4% from the same period last year; coming in below the 4.5% gain expected by analysts.
Revenue from new software licenses and cloud subscriptions is expected to be up 1%-11% for the current quarter, with earnings-per-share expected to come in the range of 85-91 cents -- the midpoint of which was in line with the current Street forecast.
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