Tuesday, June 23, 2009

Oracle beats estimates, trading up after hours (ORCL)

AlphaNinja - Oracle (ORCL) earned 46cents per share in their Q4 earnings, beating estimates by 2cents. (Although the earnings "whisper number" apparently was 46cents - so they did as expected. Whisper Numbers are what the street "really" expects a company to earn - usually b/c certain companies low-ball estimates) Revenues, down year-over year thanks to currency effects, still beat estimates. The stock is up about 2% after hours. Good results, but the stock has not been a part of this market pullback, so some of this was expected.

Always shying away from a fight (AlphaNinja sarcasm):

"We grew faster and took market share from SAP in every region around the world," said Oracle President Charles Phillips. "In Europe our applications business grew 5 percent in constant currency versus negative 27 percent growth for SAP in their most recent quarter. Historically Europe has been an SAP stronghold, but these results prove that we can compete and beat them everywhere."
"The Exadata Database Machine is well on its way to being the most successful new product launch in Oracle's 30 year history," said Oracle CEO Larry Ellison. "Several of Teradata's largest customers are performance testing -- then buying -- Oracle Exadata Database Machines. In a recent competitive benchmark, a Teradata machine took over six hours to process a query that our Exadata Database Machine ran in less than 30 minutes. They bought Exadata."

A look at their filing shows impressive results in this tough quarter. They note free cash flow for the just-ended year was $7.7billion, or 8-9% of the company's market value depending on whether one nets out cash on the balance sheet. That's a pretty nice yield for this extremely reliable operator....

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