Shares of Oracle (NYSE:ORCL) fell in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2023. Earnings per share came in at $1.22, which beat analysts’ consensus estimate of $1.20 per share. Sales increased by 18% year-over-year, with revenue hitting $12.4 billion. This missed analysts’ expectations of $12.42 million.
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Oracle posted some exciting wins, even as total revenue faltered against expectations. Third quarter cloud revenue was up 45% in USD, reaching $4.1 billion. Cloud infrastructure, meanwhile, hit $1.2 billion by itself, which was up 55% in USD. Cloud application revenue hit $2.9 billion, which was up 42% with USD for a measure, and Fusion Cloud Enterprise Resource Planning (ERP) hit $0.7 billion, up a hefty 25%. Finally, NetSuite Cloud ERP hit $0.7 billion, which was up just 23% against this time last year.
In a move sure to cheer investors, the Board of Directors hiked Oracle’s dividend to $0.40, up 25% from earlier figures.
Overall, Wall Street has a consensus price target of $95.80 on Oracle, implying 10.28% upside potential, as indicated by the graphic above.