ORCL Stock Drops Slightly, Oracle Announces Fiscal Q3 2022 Financial Results

UTC by Steve Muchoki · 3 min read
ORCL Stock Drops Slightly, Oracle Announces Fiscal Q3 2022 Financial Results
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For the third quarter (Q3) of the fiscal year 2022, Oracle reported total revenue of $10.5 billion, up 4% year-over-year.

Oracle Corporation (NYSE: ORCL) stock traded around $76.50, down approximately 0.20 percent, as of March 10, 2022, 7:59 p.m EST. During the day, Oracle announced fiscal 2022 Q3 results. Despite reporting an increase in its major financial segments, the Texas-based tech company missed on analysts’ estimates. Thereby the slight decline during Thursday’s extended trading period.

Oracle Financial Q3 Highlights

During the third quarter of fiscal year 2022, Oracle reported a total revenue of $10.5 billion, up 4 percent year-over-year. The GAAP operating income for the quarter came in at $3.8 billion, down 1 percent . On the other hand, the non-GAAP operating income for the quarter was $4.8 billion, up 1 percent.

Notably, the company reported a  GAAP net income of $2.3 billion, while its non-GAAP net income was $3.1 billion.

Worth noting , the multinational company reported a GAAP earnings per share of $0.84. Additionally, Oracle reported a non-GAAP earnings per share of  $1.13, down 3 percent

However, according to media outlet CNBC, a study conducted by Refinitiv on analysts indicate they expected non-GAAP earnings per share of $1.18 on a revenue of $10.51 billion.

According to the company through the earnings report, the decline in EPS was primarily caused by a decline in the share price of Oxford Nanopore, and an operating loss at Ampere.

“In Q3, Oracle delivered over 7% constant currency revenue growth—our highest quarterly organic revenue growth rate since we began our transition to the cloud,” said Oracle CEO, Safra Catz. “This strong top line growth was coupled with a solid non-GAAP constant currency operating

Notably, Cloud services and license support revenues saw a notable spike during the quarter thus the overall performance.

ORCL Stock and the Market Outlook

Oracle stock market has been among the gainers of the Covid crisis, thanks to the booming cloud computing industry. According to market analytics provided by MarketWatch, the company has a market valuation of approximately $203.22 billion. In the past 52 weeks, ORCL shares have rebounded between 65.86 and $106.34. The company has 176.99 shares outstanding.

In the past year, ORCL shares have gained approximately 14.13 percent, but have dropped approximately 25.31 percent in the past three months.

In the future, the company has planned a tone of innovations and development towards cloud computing.

“In Q3, Oracle completed development of the multi-cloud version of our MySQL HeatWave open-source database,” said Oracle Chairman and CTO, Larry Ellison. “The MySQL HeatWave database is already running in the Oracle Gen2 Cloud. In a few weeks, MySQL HeatWave will also be available in the Amazon Cloud and the Microsoft Azure Cloud. MySQL HeatWave was designed to compete with Amazon’s version of MySQL called Aurora, Snowflake and other popular cloud databases. What customer and database analysts are saying about Oracle’s new MySQL HeatWave database is simply astonishing. Here are a couple of examples of what the database analysts are saying.”

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Steve Muchoki
Author Steve Muchoki

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