logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Oracle Misses Sales Estimates Again, Shares Plunge

By  +Follow June 21, 2013 10:00AM
Share:
Tickers Mentioned:

OracleOracle’s (ORCL) sales numbers fell short of Wall Street’s expectations on Friday, as the company cited economic weakness in Asia and Latin America for tepid sales growth. Oracle met earnings expectations of $0.87, but reported $10.95 billion in sales while analysts were looking for $11.12 billion.

This marks the second consecutive quarter Oracle has disappointed investors, who are understandably growing impatient with Oracle’s slowing sales and inability to execute financially. However, CEO Larry Ellison says Oracle has not lost its edge.

“It was clearly an economic issue, not a product, competitive issue,” he said.

Yet, some investors fear that Oracle is starting to fall behind competitively.  Many younger, more aggressive rivals such as Salesforce.com (CRM) offer excellent software at competitive prices through the cloud.  They also have solid sales growth despite the sluggish economic, which is why Oracle investors weren’t satisfied with the economy as an excuse for poor numbers.

The silver lining in the report was that Oracle is doubling its quarterly dividend payment to 12 cents per share, which brought the stock’s yields up to around 1.6 percent.  The company also reported guidance that was in-line with estimates.                                                                                                            

Oracle also announced on Thursday that the company is moving its share-listing from the Nasdaq to the New York Stock Exchange.  The company didn’t elaborate very much on the issue, other than saying the switch is in the shareholders’ best interest.

Shares traded down 8.15 percent to $30.50 on Friday, its lowest level since November. Oracle has been one of the worst performers in the software space, as shares are down over 16 percent since March 15.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Signup for our daily newsletter and get our best articles emailed right to you!

				
				
By  +Follow June 21, 2013 10:00AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.