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Oracle shares climb as earnings beat views

Tuesday, June 13, 2023

Today’s headlines

What’s happening: Shares of Oracle gained in the after-hours trading session on Monday, following the company’s fiscal fourth-quarter earnings release.

What happened: The cloud and software company reported upbeat earnings, driven by strong sales growth in its cloud services business.

Although Oracle managed to report all-time high revenues for the full year, sales at one of its major businesses declined.

How were the results: The Austin, Texas-based company reported double-digit growth in sales for its fourth quarter.

  • Revenues surged 16.6% year-over-year to $13.8 billion, higher than the consensus estimates of $13.73 billion.
  • Adjusted earnings came in at $1.67 per share, surpassing Wall Street expectations of $1.58 per share.

Why it matters: Oracle had acquired electronic medical records firm Cerner last year, which helped the company to accelerate its push into the cloud computing market and compete with leaders like Amazon and Microsoft.

Oracle also increased its AI cloud offerings following its partnership with Nvidia, signed in March.

Oracle’s revenues for fiscal 2023 climbed to an all-time high of $50 billion, driven by its cloud applications and infrastructure businesses.

The company’s cloud services and license support revenues climbed 23% year-over-year to $9.4 billion. However, its cloud license and on-premise license revenues fell 15% to $2.2 billion.

Cloud infrastructure revenues jumped 76% year-over-year, with cloud application revenues up 45%. Fusion cloud ERP revenues rose 26%, while NetSuite cloud ERP revenues grew by 22% in the quarter.

The company’s board declared a quarterly cash dividend of 40 cents per share.

For the first quarter, Oracle said it expects non-GAAP earnings of $1.11 to $1.15 per share, versus market estimates of $1.14 per share.

How shares responded: Oracle’s shares rose 3.8% to $120.67 in the extended trading session on Monday, following the release of quarterly results, after adding 6% in regular trading session.

What to watch: Investors will continue monitoring Oracle’s push into cloud computing, which is expected to boost the company’s overall results ahead.

The markets today

The British pound will be in focus today ahead of jobs data

Context: The GBP/USD forex pair moved lower on Monday ahead of several announcements by central banks.

Details: Traders remained cautious on the political developments in the UK over the weekend. Former Conservative Prime Minister Boris Johnson formally submitted his resignation as an MP, with his close ally Nigel Adams also announcing his intention to step down. Rishi Sunak alleged that Johnson asked him to “do something I wasn’t prepared to do.”

Various central banks, starting with the US Federal Reserve, are gearing up to announce their interest rate decisions this week. The US central bank is widely expected to keep interest rate unchanged, while the Bank of England is likely to continue with its monetary tightening.

UK’s headline CPI inflation eased to 8.7% year-over-year in April, from 10.1% in March, but came in higher than market expectations of 8.2%. The country’s gross domestic product rose by 0.1% in the first three months of the year. However, the UK economy contracted by 0.3% in March.

Some strength in the US dollar also exerted pressure on the sterling on Monday. The US dollar index, which measures the greenback’s performance versus a basket of major peers, gained around 0.1% to 103.65.

The GBP/USD forex pair fell around 0.5% to $1.2514 on Monday, with the pound looking to record its sixth straight monthly gain. However, the sterling fell around 0.6% to 86.01 pence versus the euro.

What are expectations: Traders will watch the release of economic data on claimant count change, unemployment rate, and average weekly earnings from the UK today. The number of people claiming for unemployment benefits, which increased by 46,700 in April, is expected to rise by 22,000 in May. Analysts expect average weekly earnings, including bonuses, rising 5.9% year-over-year in April, following 5.8% growth in the three months to March.

Other Markets: US trading indices closed higher on Monday, with the Dow Jones index, S&P 500 and Nasdaq 100 up by 0.56%, 0.93% and 1.76%, respectively.

The news shaping the markets

A US state department spokesperson expressed concern around North Korea’s intensions to deliver further weapons to Russia. The news sent the safe-haven US dollar index lower this morning.


Australia’s NAB business confidence index fell to -4 in May, versus April’s reading of 0, exerting pressure on the AUD/USD forex pair.


Japan’s business survey index of large manufacturing firms rose to -0.4% in the second quarter, from -10.5% in the previous quarter, sending the JPY/USD pair higher in forex trading this morning.


New Zealand’s number of visitor arrivals jumped by 307.5% year-over-year to 221,271 in April. However, the latest figure being only 72% of the pre-pandemic levels of 307,400, recorded in April 2019, exerted some pressure on the NZD/USD forex pair.


US consumer inflation expectations for the year ahead declined to 4.1% in May, the lowest since March 2021. The news sent the Nasdaq 100 index higher by over 250 points on Monday.

What else to watch today

Germany’s consumer price inflation, ZEW indicator of economic sentiment, ZEW current conditions and current account, Spain’s consumer price inflation, Turkey’s retail sales, Eurozone’s ZEW indicator of economic sentiment, South Africa’s gold production and mining production, US NFIB small business optimism index, inflation rate, Redbook index and API crude oil stocks, India’s total passenger vehicles sales, China’s new yuan loans, value of outstanding loans, total social financing and money supply M2, as well as OPEC’s monthly report.


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