Oracle Corp. (NYSE:ORCL) has announced a fourth straight quarter of revenue gains for the fourth quarter of its fiscal year. The company’s reported total sales easily topped analysts’ estimates. In the period ended May 31, adjusted revenue increased 3 percent to $10.9 billion. Analysts had projected adjusted revenue of $10.5 billion, on average, according to data compiled by Bloomberg.
Net income rose 15 percent to $3.2 billion from $2.8 billion a year earlier. Profit, excluding some expenses, came in 89 cents a share, beating the average estimate of 78 cents. Shares of Oracle rose as much as 12 percent in extended trading after the earnings were released. The company’s stock has increased 20 percent this year.
The company’s push into cloud computing appears to be picking up momentum. The cloud lets customers access services without installing them on their own computers. Oracle has been rapidly building out the business. Last month, the company reported telecommunications giant AT&T Inc. had signed a deal to move thousands of databases to Oracle’s new platforms. Oracle’s founder Larry Ellison said in a statement, “In the coming year, I expect more of our big customers to migrate their Oracle databases and database applications to the Oracle Cloud.”
Oracle’s cloud business is now producing more sturdy growth. Oracle’s cloud businesses grew 58 percent to $1.4 billion in the fiscal fourth quarter. Co-Chief Executive Officer Safra Catz said in a statement, “This cloud hyper-growth is expanding our operating margins, and we expect earnings per share growth to accelerate in fiscal 2018.”
The company’s platform-as-a-service and infrastructure revenue rose 40 percent to $397 million. Sales of applications that help companies with human resources, customer relationship management, and financials jumped almost 70 percent to $964 million. That piece of Oracle’s business was detailed for the first time in the earnings report.
Oracle’s declining legacy software licensing business fell another 1 percent to $7.5 billion during the quarter. New software licenses declined 5 percent for the quarter, less than the 16 percent drop reported in the previous period. Oracle’s hardware business saw revenue fall 13 percent in the quarter.
Catz said she expects adjusted revenue in constant currency to rise 4 percent to 6 percent in the current quarter and projected adjusted earnings of 59 cents to 61 cents per share. The company expects double-digit growth in earnings per share for the fiscal year.