Oracle guidance misses expectations, stock drops
Summary
Oracle shares fell 5% in extended trading on Tuesday after the company offered lower quarterly revenue guidance than expected as it plans to increase capital expenditures to support cloud computing workloads. Analysts polled by Refinitiv are expecting fiscal first-quarter adjusted earnings of $1.03 per share and the equivalent of 3% revenue growth. The accelerating growth benefited from a comparison against the quarter last year when the coronavirus arrived in the U.S. and Oracles revenue fell some 6%. The company said revenue from its second-generation cloud infrastructure doubled in the quarter, but it did not provide the figure in dollars. "To see further relative outperformance a growth acceleration at Oracle is needed, and we dont have enough tangible data points for this yet," the analysts wrote.
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