- Oracle climbed as much as 7% in pre-market trading on Thursday morning after the firm reported better-than-expected earnings for the fourth quarter.
- The cloud and database company is set to open at a record high, which it last hit in April at $55.41 a share.
- Oracle’s strong fourth-quarter results were thanks to a boost in its cloud applications business.
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Oracle jumped by as much as 7% before the opening bell on Thursday and was on track to open at a record high after beating expectations for its fourth-quarter earnings.
The company generated $1.16 in earnings per share, outperforming analysts’ expectation of $1.07. Fourth-quarter revenues were $11.1 billion, beating Wall Street’s estimate of $10.93 billion. Revenues grew about 1% from the same quarter last year.
“These strong results extend Oracle’s already commanding lead in worldwide cloud ERP,” Mark Hurd, the co-chief executive officer of Oracle, said in a press release on Wednesday. “Our cloud applications businesses are growing faster than our competitors.”
The company attributed its strong fourth-quarter results to growth in its cloud application business, which includes a number of cloud services that help other companies run their businesses. Cloud Services and License support revenues, Oracle’s largest business segment, accounted for $6.8 billion in revenue this quarter.
“Our high-margin Fusion and NetSuite cloud applications businesses are growing rapidly while we downsize our low-margin legacy hardware business.” Safra Catz, the co-CEO, said in a press release.
Total revenues in 2019 reached $39.5 billion, with its Cloud Services and License segment support generating $26.7 billion.
The company’s board of directors also declared a cash dividend of $0.24 per share.
Oracle is up more than 24% so far this year.