Oracle (ORCL) earnings Q3 2022

Safra Catz, then co-chief executive officer of Oracle Corp., speaks during the Oracle OpenWorld conference in San Francisco on Sept. 20, 2016.

David Paul Morris | Bloomberg | Getty Images

Oracle shares slid more than 6% in extended trading on Thursday after the database software maker reported fiscal third-quarter earnings that failed to meet analysts’ expectations.

Here’s how the company did:

  • Earnings: $ 1.13 per share, adjusted, vs. $ 1.18 per share as expected by analysts, according to Refinitiv.
  • Revenue: $ 10.51 billion, vs. $ 10.51 billion as expected by analysts, according to Refinitiv.

Oracle’s revenue increased 4% from a year earlier in the quarter, which ended Feb. 28, according to a statement. Net income declined 54% to $ 2.32 billion.

Net income dropped due to two investments. The company said profit was hurt by the tumbling share price of gene-sequencing company Oxford Nanopore and an operating loss at Arm server chip maker Ampere Computing, a private company.

“We remain confident that our investments in these two cutting-edge technology companies will deliver very strong returns for Oracle,” Oracle said.

The company’s short-term deferred revenue, at $ 7.87 billion, came in below the StreetAccount consensus of $ 8.01 billion.

In the quarter Oracle announced its intent to acquire Cerner, a developer of software for managing health records, for $ 28.3 billion in cash.

With respect to guidance, Oracle said it expects $ 1.35 to $ 1.39 in adjusted earnings per share and 3% to 5% revenue growth in the fiscal fourth quarter. Analysts polled by Refinitiv had been looking for $ 1.38 per share and $ 11.76 billion in revenue, which works out to 4.8% revenue growth. The guidance does not include contributions from Cerner, Safra Catz, Oracle’s CEO, said on a conference call with analysts.

Executives will discuss the results with analysts on a conference call starting at 5 pm ET.

Prior to the after-hours move, Oracle stock was down 12% so far in 2022. The S&P 500 index has dropped about 11% over the same period.

This is breaking news. Please check back for updates.

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