It said it expects to post revenue of $9.55 billion, on a constant currency basis, in line with the consensus.
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The company has managed to steadily increase cash and cash equivalents. Oracle’s long-term debt-to-equity ratio rose from 62.35 in 3QFY15 to 81.39 in 4Q, which shows the company’s strong dependence on debt to finance its operations.
Oracle’s net income fell to $1.75 billion, or 40 cents per share, from $2.18 billion, or 48 cents per share.
All told analysts expected total software and cloud revenue of $6.58 billion. Year-to-Date the stock performance stands at -14.84%.
While Oracle has had success with its cloud model, analysts have said the 38-year-old company has not been moving fast enough to make up for declines in its traditional software sales.
Cloud infrastructure as a service (IaaS) revenues were $160 million, up 16% in US dollars and up 23% in constant currency.
Most sell-side analysts are bullish on the stock, as indicated by a recent Bloomberg poll. Finally, Stifel Nicolaus reduced their price objective on Oracle from $49.00 to $47.00 and set a buy rating on the stock in a research note on Thursday, June 18th. In comparing the stock’s current level to its extended history, the stock is trading -19.683% away from its 52-week high of 46.710 and +6.762% away from the stock’s low point over the past 52 weeks, which was 35.140. He said that a majority of these resellers outlined fair sequential sales trends that are in-line with projected targets.
Oracle Corporation, now valued at $166.51 billion, has a median Wall Street price target of $47.50 with a high target of $52.00.
Oracle stock was down 1.54 per cent in after-hours trading. Rapidly growing cloud revenue combined with a doubling of cloud margins will have a huge impact on EPS growth going forward.
Total On-Premise Software revenues dipped 4 percent to $5.8 billion. Analysts watch that number for insight into how well the company can sell new products and services to first-time customers and existing clients. Although the shift will certainly affect the bottom line in the near-term, it is likely to pay off in the long run.
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Oracle, which has built its business by selling corporate databases and other applications, owns the Solaris operating system and Java, a widely used software-programming platform, as part of its 2009 acquisition of Sun Microsystems.
