Oracle Earnings Impress Heavily: A Closer Look

Technology companies have remained the craze over recent years, with the Mag 7 group significantly thrusting the market higher on the back of the AI frenzy.But outside of the Mag 7 group, a well-known technology giant, Oracle ORCL, has also been notably strong, up 93% over the past year and widely outperforming the group. The company offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud.Image Source: Zacks Investment ResearchAnd just recently, the company released its quarterly results, which sent shares soaring post-earnings. Let’s take a closer look at the robust results and what’s fueled the positivity.Oracle Earnings ImpressOracle’s headline results were primarily mixed, with the company matching the Zacks Consensus EPS estimate of $1.47 but falling marginally short of our $15.0 billion revenue estimate.Adjusted EPS was up 2% year-over-year, whereas sales of $14.9 billion were up a strong 12.2%. Notably, the 12.2% sales growth rate reflected a growth acceleration relative to prior periods, as we can see in the chart below.Please note that the chart tracks the YoY % change in sales, not actual sales numbers.Image Source: Zacks Investment ResearchThe acceleration is certainly notable for ORCL, particularly so following other companies’ results that have similarly revealed big demand for cloud computing services.Most importantly, its remaining performance obligation (RPO) totaled $455 billion, up an immense 360% year-over-year. Four multi-billion-dollar contracts signed throughout the period led to the growth surge, with the company also lifting its Cloud Infrastructure guidance in a huge way.Larry Ellison, CTO, stated –‘We expect MultiCloud revenue to grow substantially every quarter for several years as we deliver another 37 datacenters to our three Hyperscaler partners, for a total of 71.’The comments and results led to the surge in shares for understandable reasons, with Oracle’s demand outlook remaining bright for years to come.Bottom LineOracle’s ORCL recent set of quarterly results has again put the spotlight on the AI frenzy, with favorable demand trends and a bright outlook paving the way for the stock’s big run post-earnings.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Oracle Corporation (ORCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks